Ibec's analysis

Explore our comprehensive Budget Analysis slide deck attached for expert insights into the macro trends, energy supports, and tax measures shaping the 2027 economy.

We welcome the focus on workforce transition, entrepreneurship, and innovation. Key wins include unlocking €150 million from the National Training Fund for AI readiness. Furthermore, the Capital Gains Tax reduction to 31% and vital R&D tax credit improvements will significantly boost Ireland's entrepreneurial ecosystem.  

  

Download Ibec's Budget analysis

Watch / Ibec's budget briefing

https://www.youtube.com/watch?v=oE4PIGLOhaU&feature=youtu.be

Watch our trade associations’ Budget 2027 reaction

Financial Services Ireland 

Irish Medtech

Technology Ireland

Engineering Industry Ireland

 
BioPharmaChem Ireland


Food Drink Ireland


Retail Ireland

 
​Small Firms Association


Aircraft Leasing Ireland


Dairy Industry Ireland


Property Industry Ireland

Budget Submission

Budget 2027 must balance immediate energy-driven volatility with long-term, once-in-a-generation technological and structural shifts. The trajectory of the global economy over the coming months and into 2027 will be determined by the duration of the disruption in the Strait of Hormuz. This global environment will, in turn, dictate the growth path of Ireland’s economy over the short-term.

Budget submission 2027

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 Shock

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.
Budget submission highlights
Press release A Resilience-focused Budget Read more
presentation Budget Submission Deck Download