Erin McGreehan (Louth, Fianna Fail)
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56. To ask the Minister for Enterprise, Trade and Employment the supports available to SMEs in view of the increase of cost of business, especially regarding the minimum wage and auto enrolment; and if he will make a statement on the matter. [61997/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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The Government recognises that the cost of doing business has been an issue for firms in recent years, arising from both the wider inflationary trends as well as Government mandated changes. It is important to note that costs for firms, as measured through the CSO’s Wholesale Price Index, are declining, and are down 2.6% in the 12 months to September 2025.

Most recently the Government has taken action to address business costs through the publication of the Action Plan on Competitiveness and Productivity, and the convening of the Cost of Business Advisory Forum, which are both commitments in the Programme for Government.

The focus of the Action Plan on Competitiveness and Productivity is on actions that can be taken to strengthen Ireland’s competitiveness and productivity which in turn will lead to improvements in our economic performance. A core theme of the plan is ‘Regulating for Growth and Controlling Costs’, with 18 actions – including five priority actions – focused on addressing this issue.

The Cost of Business Advisory Forum delivers on the commitment regarding supports for Small Business, Enterprise and Industries. The first meeting of the Forum took place in June with representatives in attendance from across Ireland’s enterprise sector and joined by officials from a variety of State Agencies, Regulators, and Government Departments. The purpose is to jointly consider those issues that can lead to higher costs for businesses in Ireland, any associated regulatory or infrastructural issues that merit a changed approach, and those steps that could be taken to mitigate these issues. The Forum is scheduled to report to Government in Q1 2026.

As part of Budget 2026 Government agreed to increase the National Minimum Wage. The Government is committed to ensuring a balance between a fair and sustainable rate for low paid workers, and one that will not have significant negative consequences for employers and competitiveness. As part of measures designed to bolster business resilience and support competitiveness, Government agreed to adjust the implementation timeline for the Living Wage to 2029. The Government also agreed to defer a decision on sub-minimum youth rates of the National Minimum Wage until 2029.

Budget 2026 provided an overall package of €9.4 billion. €8.1 billion has been provided for public spending and €1.3 billion for new tax measures. Measures aimed specifically at developing enterprise and supporting SMEs account for c.€531 million of the cost of the Budget Package and include a reduction in the Hospitality VAT rate from 13.5% to 9% (from 1 July 2025); an increase in the CGT Revised Entrepreneur Relief lifetime limit from €1m to €1.5m; and an increase in the Employer PRSI threshold to ensure that employers do not pay the higher rate of PRSI for full-time workers earning the minimum wage.

I would also encourage any small business owners looking to avail of government support to consult the National Enterprise Hub which launched in July 2024. This Enterprise Hub has been designed as an entry point to aid business owners find relevant supports and help for their business.