Small Firms Association welcomes ‘Cost of Business Advisory Forum Report’, but warns against proposed wage hikes
The Small Firms Association (SFA) has broadly welcomed the publication of the Cost of Business Advisory Forum’s Final Report but has cautioned that many of the report’s cost-saving recommendations will be offset by potential increases in the National Minimum Wage. The SFA is calling on the Government to move swiftly from report adoption to decisive, timed implementation of its 63 recommendations.
For the past 12 months, the SFA was an active member of the forum where it made significant contributions that have resulted in a range of recommendations designed to stem the tide of high business costs. They include the SFA’s long-standing call to amend the Enhanced Reporting Requirements framework to exempt businesses employing up to 20 people or those with an annual turnover under €1 million, alongside transitioning real-time submission timelines to a manageable monthly reporting framework.
Other key SFA wins include the recommendation to introduce a formal "comply or explain" mechanism for the cross-departmental SME Test, simplifying corporate tax returns, accelerating utility bank-switching processes, and creating targeted price transparency formats for non-domestic utility customers.
Reacting to the report’s publication, SFA Director David Broderick said:
"The SFA was delighted to participate in the forum and is proud of the recommendations it has secured that will lower costs and reduce the administrative burden on small business owners. However, the SFA is extremely disappointed that employment costs were not part of the forum’s deliberations.
“Our research has consistently shown that employment costs remain the biggest issue facing small businesses. For the forum to omit any discussions on this matter is a missed opportunity. Furthermore, the mooted increases in the National Minimum Wage in the upcoming budget will offset any savings for small businesses that may arise from the report’s recommendations.
“The SFA would like to see the report’s recommendations implemented as soon as possible while freezing any potential increase in the National Minimum Wage.”
While supporting the non-pay cost-cutting roadmap delivered by the Forum, the SFA emphasises that small firms remain highly exposed to severe cost pressures outside the scope of this report. Specifically, ongoing changes in employment costs — including statutory sick pay, pension auto-enrolment, and incremental updates to the National Minimum Wage — continue to pile cumulative pressure on bottom lines. Since the Forum’s binding terms of reference strictly excluded labour costs, the SFA cautions that this report solves only one side of the small business survival equation.
"Let us be entirely clear: beyond the excellent work and structural roadmap delivered by this Forum, much more work must be done by the Government to tackle the regulatory and employment interventions that disproportionately impact Ireland's small business owners," David Broderick added.
"Small business owners are the absolute backbone of the Irish economy, yet they possess the lowest administrative capacity to absorb policy shocks. We cannot ignore the cumulative weight of rising employment costs currently moving through the system. We expect the Minister and relevant departments to not only deliver on these non-pay recommendations with defined success metrics but to also urgently review the broader cumulative cost of doing business in Ireland before small-firm margins collapse entirely."
The publication comes against a backdrop of acute operational strain. The recent SFA 2026 Cost of Business Survey highlighted that small firms continue to face escalating and compounding overheads. According to the data, small business owners have seen an alarming, multi-year upward trajectory in basic costs. Insurance alone remains a massive deadweight drain; the survey noted that over half of small enterprises cited soaring insurance premiums as a severe threat to business viability. However, the SFA expects the forum’s recommendations to reduce various costs, including insurance, which would ensure greater viability within the small business community.
Full report and more information about the Cost of Business Advisory Forum can be found here.
ENDS
Notes to Editor:
- About the SFA: The SFA proudly represents homegrown businesses employing up to 50 employees across every sector of the Irish economy.
- Media Contact: Jonathan McDade at Jonathan.mcdade@sfa.ie or 0876253551
