Ibec, the group representing Irish business, has welcomed Budget 2027’s strong emphasis on workforce transition and praised the decision to unlock €150 million from the National Training Fund (NTF). Given the scale of workplace change driven by AI, Ibec said the employer-funded NTF is an essential resource to ensure workers and workplaces are adequately supported to meet both the challenges and opportunities of AI. More broadly on innovation, Ibec said extending the qualifying criteria for the R&D tax credit is an important step in ensuring more businesses carrying out high level research across new areas qualify for the 35% credit announced in last year's budget, with changes to the R&D outsourcing rules also a major positive for business. The reduction in the capital gains tax rate from 33% to 31% will be a material boost to Ireland’s entrepreneurship ecosystem.
Ibec was disappointed by the Government's decision to accept the Low Pay Commission’s recommendation for an increase which is almost double what most businesses were forecasting for 2027 and will be felt most acutely in the likes of the retail the retail and experienced economy sectors. However, the measures announced on personal tax are positive both in terms of consumer confidence and in providing relief to households managing rising costs. Cumulative regulatory, labour, and energy costs remain a major challenge for businesses, and labour costs must always be balanced in ways that do not trigger severe viability issues for firms, particularly SMEs.
Ibec also welcomed the introduction of the Savings & Investment Scheme, which creates opportunities for savers to see a better return on their money and has the potential to generate capital investment.
Fergal O’Brien, Executive Director of Policy, Lobbying, and Global Affairs said:
"A budget's emphasis and priorities are just as important as the figures themselves- they signal where investment decisions are ultimately directed and reflect our broader economic and societal intent. While much of this budget commentary will focus on household supports, the decisions around AI and innovation are vital to future-proofing our economy and workforce opportunities.
The business community is also fully aware of the changes AI will bring to every sector, both domestic and global, and the growing demand to have a workforce that can respond to these changes. This is why business advocacy regarding the utilisation of the NTF has been relentless. We encourage the Government to continue viewing the NTF as a vital vehicle to ensure our workforce and economy are ready for AI.
While businesses strongly disagreed with the Low Pay Commission's minimum wage recommendation, I think there remains a strong acknowledgement in Budget 2027 and the recent Cost of Business Report that firms are dealing with mounting costs due to excessive regulation, cumulative labour costs, and global energy pressures. We welcome the increase in the employer PRSI threshold which will somewhat offset the minimum wage increase announced today. The Government should continue to follow through with their Programme for Government commitment to offset the increases in the national minimum wage through the PRSI system.
Regarding the new Savings & Investment Scheme, it offers a real opportunity to generate better returns on household savings. Its success will require a cultural shift in how individuals and households view investment, and we look forward to working with the Government to support awareness and adoption."
CorporateTraining.ie is a training directory listing thousands of professional courses nationwide. Our goal is to help individuals and companies alike to find relevant courses and providers for professional development training across Ireland. Whether you want to explore your CPD options, get on-site training for your team, or find the perfect qualification to make your CV stand out – we make it easy. You can find the perfect programme by searching CorporateTraining.ie today.
