Strategic investment pillars

1
Rewiring our Approach to Talent

Our labour market is our best hedge against volatility, but we need to face up to the policy implications of a once-in-a-generation period of technological change which has the potential to transform our labour market:

• Implement a 'use it or lose it' rule for the National Training Fund (NTF). Reaching a surplus cap must trigger a temporary suspension of the levy to allow employers to invest directly in upskilling.
• Index income tax bands and credits above wage growth, including a €3,000 increase in the top entry point to protect earners from inflation.
• Introduce a tax-exempt Savings and Investment Account to unlock domestic capital for investment.
• Allocate €125 million from the National Training Fund (NTF) surplus to rapidly expand Skillnet Business Networks, Springboard+, Microcredentials/micro-qualifications and 'Skills to Advance'.

2
Driving Growth, Innovation, and AI Preparedness

To remain a global hub for capital and talent, Ireland must move from being an early follower to an early adopter:

• Introduce a €10,000 AI training voucher for SMEs and Mid-Caps to ensure widespread digital readiness.
• Expand the R&D tax credit (€ 130 million) for related party R&D and its management to maintain our competitive edge in knowledge-based growth.
• Invest €410 million in national resilience, including cyber and defence capabilities.

3
Navigating the Energy and Inflation Stock

We must protect the economy's engine from external shocks while accelerating the transition away from fossil fuels:

• Put in place a €2 billion ringfenced contingency reserve to respond flexibly to energy-related inflation and safeguard critical infrastructure delivery.
• Reduce policy-related fixed costs on electricity bills through a €301 million Exchequer subvention.
• Scale up enterprise decarbonisation grants and capital allowances by €72 million.