The Irish Congress Trade Unions (ICTU) has called on the Government to use Budget 2026 to place the economy on a firmer footing by reducing reliance on corporate tax windfalls and increasing investment in infrastructure.
In its pre-budget submission, ICTU warned that despite Ireland’s apparent economic strength, the country’s fiscal position is “deeply misleading,” with the Government running an underlying deficit once windfall corporation tax receipts are excluded.
Congress said that in order to mitigate against the over-reliance on corporate tax receipts, the Government should prioritise investment in infrastructure and innovation, while reducing child poverty and improving public services.
The submission also calls for Government to rule out reducing the VAT rate for the hospitality sector to 9%, describing proposals to cut the rate as “economic folly”, given the €800m cost at a time when evidence suggests the sector is doing well.
ICTU representatives met with Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers today.
“With a welcome commitment to multi-annual budgeting, Budget 2026 provides an opportunity to future-proof the Irish economy while supporting workers across the country,” said ICTU General Secretary Owen Reidy.
“However, continued over-reliance on corporate tax windfalls represents a clear and profound source of risk that Budget 2026 must address.”
“Therefore, the Government must prioritise investment in Ireland’s productive capacity, increasing spending on education, skills, and research and development while ensuring the tax base is sufficiently robust,” Mr Reidy said.
