A lot happens at Ibec. From the events and VIP briefings we host with political and business leaders to our political engagements and campaigns we run on your behalf. Here we show some recent updates from our CEO, Danny McCoy.
CEO Update: What Budget 2026 means for businesses
Tuesday, 07 October
The latest CEO Update to Ibec membership from Danny McCoy
Dear member,
Firstly, I am pleased to share our economic analysis of the Budget announcement and what it means for our members. You can access it here.
As Ibec’s Executive Director of Lobbying and Influence outlined in a recent Business Post opinion piece ahead of the Budget, the Government entered this Budget facing a myriad of policy challenges - not least the significant population growth driving demand for public services and infrastructure.
Overall, we welcome Budget 2026’s focus on driving innovation, protecting and creating jobs, and increasing investment in critical infrastructure. The measures announced will support business growth and the viability of housing development. As the first Budget of the new election cycle, Ibec’s role will be to hold the Government accountable for the commitments made both in the Programme for Government and in today’s announcements.
However, we believe Budget 2026 demonstrates sensible ambition, particularly through its continued commitment to invest an additional €2 billion in capital spending on infrastructure, as well as further investment in skills and innovation to drive productivity. The introduction of a 9% VAT rate and changes to corporation tax for apartment construction is not a panacea for addressing housing shortages, but it represents an important step towards stimulating much-needed housing supply.
Several key recommendations advocated by Ibec have also been adopted, including the expansion of the Research and Development (R&D) tax credit to 35%, up from 30%, and the widening of the scope of qualifying research - crucial measures for fostering high-value job creation among both Irish and international firms.
For some time, Ibec has highlighted growing cost-competitiveness challenges, exacerbated by tariffs and rising operational costs. The Government’s commitment to support some vulnerable businesses through a VAT reduction for the hospitality sector is therefore welcome, though we know it leaves many enterprises outside the scope of this measure and further cost offset measures, such as the employers PRSI offset committed in the Programme for Government, will be required.
Finally, the reduction in tax on investment funds from 41% to 38% marks an important first step towards addressing issues in our tax system that disincentivise consumer investment in funds. This is a positive move towards reforming tax policy to encourage greater consumer participation in investment products - something I wrote about ahead of the Budget in the Irish Examiner on Monday.
Best regards,
Danny McCoy,
Ibec CEO
Walk the Walk / with Reputation Inc
“Walk the Talk”, a new series from Reputation Inc featuring conversations with leaders in business and broader society, delving into the intersection between business and reputation.
The episode, featuring Ibec CEO Danny McCoy, is presented in in four bite-sized video clips, exploring a range of topics including strategy, reputation, leadership, sustainability, and culture.
