Peter Burke (Longford-Westmeath, Fine Gael)

This is a strongly pro-jobs and pro-enterprise budget. The signal has gone out that Ireland is a fantastic place to do business, to scale up and to invest in. Our economy and workforce must continue to reap the benefits. The budget demonstrates the Government’s commitment to ensure that our economy delivers for our citizens and supports our people and businesses through investment and sensible management of our finances.

The fact we have a record number of people - 2.82 million – working in our economy, which, notwithstanding the strong geopolitical headwinds, continues to enjoy healthy levels of growth, is a testament to the benefits of Government budgetary policy and the hard work of the Irish people. The package of budget measures announced yesterday continues our dual approach of safeguarding our national finances while providing supports in targeted areas. As a Government, our aim must always be to improve the lives of our people by focusing on quality employment and keeping businesses viable because this provides a strong pathway for people to succeed and enjoy a good standard of living.

Growing productive economies does not happen by chance. Our business ecosystem requires smart intervention to future-proof our industries and jobs. We have seen careful and considered management over the past decade that has brought our economy back from the brink since 2011. We must continue this pathway in order to ensure that we do not become complacent. We must prepare for the next wave of technology and advancement.

The reduction in the rate of VAT relating to the hospitality sector to 9% will benefit businesses in the sector. Those businesses are an integral part of every village, town and city in the country. This rate cut will provide valuable employment to local communities and significant support to their sectors. While the hospitality package represents less than 18% of the total tax package, it is an appropriate lifeline for our SMEs when it comes to viability and value. This sector accounts for almost 200,000 jobs, with many of those who work in it on the national minimum wage.

Our other pro-business tax measures in budget 2026 include: an increase in the research and development tax credit from 30% to 35%, which will be a huge benefit to our innovative industries, increasing investment and employment in pharma, MedTech and engineering and other such areas in the coming decades; an increase in the capital gains tax; a revised entrepreneur relief lifetime limit, increased from €1 million to €1.5 million, at a rate of 10%; amendments to the digital games tax credit to support the lifecycle of video game development; an extension of the special assignee relief programme scheme for a further five years; changes to the foreign dividends rules; and the extension of the key employee assignment scheme at the end of December 2028. When taken together, these measures strongly signal the Government’s commitment to a pro-enterprise vision espoused in the action plan for competitiveness and productivity, which I launched with the Taoiseach and the Tánaiste last month, and the action plan on market diversification. Both comprehensive plans signal the path forward for Irish SMEs as we navigate changed geopolitical trading environments.

I also welcome the Government’s decision to endorse the recommendation of the Low Pay Commission to increase the minimum wage to €14.50 per hour. In coming to its decision, the commission outlined that it took a number of factors into consideration, including the potential impact of any increase on employment and competitiveness. The 4.8% increase in the minimum wage is not too dissimilar to our overall estimated increase in wages right across the economy. Some 200,000 workers will benefit from this increase.

Where businesses thrive, jobs will follow. Budget 2026 is profoundly pro-enterprise and pro-worker. It recognises the critical link between industrial development, infrastructure investment and job creation. In today’s volatile global economy, we are focusing on supporting Irish SMEs, regional employment, innovation and tourism. This will be key to the launch of our tourism plan next month. That plan will focus on new markets, diversification and maintaining some of the high-value markets we currently have.

In the context of protecting the 2.82 million people employed right across our economy, we cannot take anything for granted. We must continue to maintain a high-quality work-life balance for our people and our country.

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