Alan Dillon (Mayo, Fine Gael)

Budget 2026 is about securing Ireland's future, supporting families, protecting jobs and investing in infrastructure that is much needed. This is a budget of more than €9.4 billion, with €8.1 billion in spending and a €1.3 billion tax package. That is a 7% increase in total spend. We are prioritising those who need it most. We are looking after pensioners, carers and people with disabilities. As a party of fiscal responsibility, my party, Fine Gael, is saving more than €6.5 billion into two long-term funds to safeguard our future.

On backing small businesses and jobs, this budget is about ensuring Irish enterprise is put to the fore, protecting jobs and preparing our economy for the future. Working with the Minister, Deputy Burke, we are focusing on three priorities: cutting costs for businesses, driving innovation and supporting workers. We know the cost of doing business is a major concern for many and that is why we set up the cost of doing business advisory forum, which looks at tackling legal costs, compliance burdens and utility prices, with recommendations due to be published early next year.

We are also focusing on actions we can implement in the medium to long term. Hospitality VAT will be cut to 9% from 1 July 2026, protecting more than 191 jobs in cafés, restaurants and hairdressers in every town and village across the country. We are also boosting funding to local enterprise offices to help small businesses to digitalise, decarbonise and grow. A new small business unit has been established within our Department. It is cutting red tape and has already seen reductions in paperwork of more than 23%, making it easier for businesses to access grants through the national enterprise hub. We are also delivering on our programme for Government commitments on an action plan for competitiveness and productivity. Key measures included in this year's budget are the research and development tax credit, which has been increased from 30% to 35%, and the entrepreneur relief cap, which has been raised to €1.5 million at a capital gains tax rate of 10%. We have also seen enhancements to the digital games tax credit and an expansion of the small companies administrative rescue process, SCARP, which will help viable small companies to restructure and survive.

We are also backing innovation with regional gross capital SME supports. We are establishing the AI office of Ireland, which will be a landmark step in making Ireland a leader in responsible AI adoption.

This sends a clear signal to global investors that Ireland is a place to work, to do business and to innovate. It sends a signal to Irish SMEs that we are here to help them to embrace AI and green technologies and to allow our indigenous Irish companies to scale internationally. From 1 January 2026, the minimum wage will rise to €14.50 per hour, the highest ever ahead of inflation. We will also adjust the USC in order that full-time minimum wage workers stay at the lower rate of 2%. This budget also accelerates Ireland's transition to a circular economy and protects our environment, creates jobs and builds resilience. In my other role within the Department of Climate, Energy and the Environment, I was delighted to see increasing investment in waste enforcement, funding around reuse-repair initiatives and supporting resource-efficient building practices. Through the Circular Economy Fund we will be providing innovation grants for SMEs. This is a clear signal that the circular economy means cleaner streets and greener spaces and it will enable thousands of skilled jobs in every region. Budget 2026 is about balance and supporting our people but also supporting businesses while protecting workers. As a Government in an era of such global uncertainty, we must ensure Ireland remains a vibrant, competitive and fair place to work and to do business.

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