What the new Programme for Government means for SMEs in Ireland

The Irish Government’s new Programme for Government promises a business-friendly tax policy, fresh sector-specific strategies, and to consider the creation of economic development zones to support strategic growth.

The 166-page document details plans for every department and policy area over the next five years. For SMEs, several key commitments stand out, offering potential opportunities for growth and resilience in a challenging economic landscape.

Supporting small businesses

The Government has pledged to bring forward measures specifically for the small business sector. These include proposed changes to VAT and PRSI as part of the budget process, which could alleviate financial pressure on SMEs. Additionally, all elements of labour market policy impacting SME viability will be assessed, signalling an intent to reduce barriers to business sustainability and growth.

Job creation

The Government has set a target to provide 300,000 extra jobs by 2030, supported by strategic investments, supportive enterprise policies and a focus on fostering a vibrant economy.

Energy cost relief

Amid ongoing energy cost pressures, the Programme for Government includes plans to introduce taxation measures aimed at containing these costs. By addressing energy expenses, SMEs may find relief in operational costs, enabling them to remain competitive in the market.

Regional investment

The Government has committed to targeting at least half of IDA Ireland investments outside Dublin. This decentralisation of investment will offer SMEs in regional areas greater access to multinational partnerships, supply chain opportunities, and economic stimulation in their localities.

Climate commitments and business opportunities

The Government’s recommitment to a 51% reduction in emissions by 2030 and net zero emissions by 2050 presents opportunities for SMEs, particularly those in renewable energy and green technology sectors. Plans to fast-track offshore wind development and prioritise waste heat capture for district heating systems create avenues for innovative SMEs to contribute to Ireland’s climate goals.

Trade and export growth

The Programme includes a commitment to validating the Comprehensive Economic and Trade Agreement (CETA), which could provide SMEs with expanded access to international markets. Additionally, plans for a new IDA Ireland five-year strategy may further support SMEs in export growth, fostering their integration into global supply chains.

Digital and data-driven developments

Data centres are recognised in the Programme for their central role in economic growth, with a focus on efficient grid usage and prioritisation of waste heat capture. SMEs specialising in IT services or district heating could benefit from opportunities to collaborate with these centres, leveraging their output for innovative local applications.

Tourism and hospitality boost

The Programme’s commitment to a new national tourism initiative, titled the Year of the Invitation, echoes the success of 2013’s The Gathering. This initiative aims to attract international visitors, which could invigorate the hospitality and tourism-related SME sector across Ireland. We have provided more insight on the impact for the tourism sector here.

Seeding the agriculture and food sector

The previous Government’s support for the agriculture and food sectors was a focal point of Budget 2025, and this is carried through in the new Programme for Government. The Government is committed to backing Irish interests in opposition to the Mercosur trade deal and accelerating their efforts in opening new markets for Irish food products.

Conclusion

The new Programme for Government outlines multiple initiatives that could benefit Ireland’s SME sector. From fiscal relief measures and energy cost reductions to regional investments and trade expansion, the policies offer pathways for businesses to thrive and increase job creation.

At Crowe, we play an important role in ensuring our clients are well prepared to meet the demands of a shifting economy landscape. Talk to us today to learn how we blend experience and expertise to transform Government initiatives into tangible business success.

You can learn more about the Programme for Government here (pdf).