Budget 2026: Time for action on enterprise

As we approach Budget 2026, Irish businesses face mounting pressures that demand more than incremental adjustments. With US tariffs at 15%, auto-enrolment looming, and employment costs escalating, the government must deliver concrete measures that enable growth, not constrain it.

The roadmap for a pro-enterprise budget is clear.

First, complexity is costing competitiveness. Irish businesses spend significant resources on tax compliance instead of growth activities. Streamlining our tax code and making R&D credits genuinely accessible, for example increasing rates to 35% and simplifying the application process, would free enterprises to focus on innovation and expansion.

Second, investment needs unlocking. Our 33% CGT rate, Europe's second highest, pushes capital elsewhere and drives premature business sales. Reducing this to 20% while supporting family business transitions would transform Ireland from a place where owners must exit early to one where they can choose to expand.

Third, employment costs require urgent attention. Capping employer PRSI contributions and widening tax bands would signal that Ireland values job creation. With auto-enrolment arriving in January, businesses need practical support to manage this significant new cost.

The hospitality sector, facing severe margin pressure, needs the promised VAT reduction from 13.5% to 9%. This isn't just about one sector: hospitality drives tourism, employment, and regional economies across Ireland.

Additionally, with concentration risks growing and traditional markets uncertain, businesses need concrete support to diversify. Export credits, market development grants, and targeted incentives for entering new markets are necessities for reducing our economic vulnerabilities.

These proposals represent practical steps toward maintaining competitiveness. At Crowe, we believe Irish businesses deserve a budget that helps them compete globally while strengthening their foundations at home.

Our Budget 2026 webinar, featuring leading economic analyst and commentator Jim Power along with a panel of Crowe Ireland experts moderated by tax partner Claire Davey, is now available to view on demand. Click here to to find out more about what Budget 2026 means for business owners across all sectors.