Irish business organisations are calling on the Government to use Budget 2027 to reduce rising costs for companies and speed up infrastructure projects needed to support economic growth.
The appeal follows the publication of the Summer Economic Statement, which outlines an €8.5 billion spending package for 2027 alongside tax measures.
Chambers Ireland chief executive Ian Talbot said the Government must combine careful management of public finances with targeted investment to strengthen Ireland’s long-term economic capacity.
Businesses are facing sustained increases in energy, labour, regulatory and operating costs, while infrastructure projects are not being delivered quickly enough to meet the demands of a growing economy, the organisation said.
“Budget 2027 must therefore focus on measures that reduce cost pressures, accelerate delivery, and support investment, employment and regional growth,” Talbot said.
Chambers Ireland warned that rising costs and delays to major infrastructure projects were creating a competitiveness challenge for Irish businesses.
“Competitiveness isn’t an abstract economic concept; it is what determines whether businesses choose to invest, expand and create jobs,” Talbot said.
He urged the Government to focus on spending and tax measures capable of delivering the greatest long-term benefit as departments prepare for the Budget.
Chartered Accountants Ireland also called for changes to improve the country’s tax competitiveness. The organisation said the Government should address fiscal drag, reduce unnecessary compliance requirements and ensure the tax system supports workers, investment and enterprise.
Cróna Clohisey, director of members and advocacy at Chartered Accountants Ireland, said Budget 2027 should make it easier for businesses, particularly small and medium-sized enterprises, to operate and grow.
She welcomed reports that the Government was considering changes to income tax bands to reduce the impact of inflation.
“When tax bands and credits fail to keep pace with inflation, this creates challenges not just for workers but for employers too,” Clohisey said.
Deloitte Ireland tax and legal partner Daryl Hanberry called for the standard income tax band to be increased by €6,000 over the next three years, reaching €50,000.
He said the Government should distinguish between current spending and capital investment, arguing that infrastructure projects should continue even as other expenditure is controlled.
Hanberry described the proposed €8.5 billion Budget 2027 package as a positive indication that capital investment would remain a priority.
He said increasing the income tax band by €2,000 in the next Budget would cost approximately €505 million, or just under 6 per cent of the overall package.
However, he warned that changes to income tax credits could push the total cost of tax measures above €1 billion, leaving less room within the €1.5 billion tax package for other reforms.
Business groups now want the Government to use the months before Budget Day to address the combined pressure of rising costs, taxation and infrastructure delays.
