{"id":49427,"date":"2026-10-07T00:23:46","date_gmt":"2026-10-07T04:23:46","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2026\/10\/07\/business-groups-unhappy-with-minimum-wage-move\/"},"modified":"2026-10-07T00:23:46","modified_gmt":"2026-10-07T04:23:46","slug":"business-groups-unhappy-with-minimum-wage-move","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2026\/10\/07\/business-groups-unhappy-with-minimum-wage-move\/","title":{"rendered":"Business groups unhappy with minimum wage move"},"content":{"rendered":"
\n

Business group Ibec said it welcomed Budget 2027’s strong emphasis on workforce transition and praised the decision to unlock \u20ac150m from the National Training Fund (NTF).<\/p>\n

Ibec said that given the scale of workplace change driven by AI, 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.<\/p>\n

But it added that it 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.<\/p>\n

It warned that the increase will be felt most acutely in the likes of the retail and experience economy sectors.<\/p>\n

“However, the measures announced on personal tax are positive both in terms of consumer confidence and in providing relief to households managing rising costs,” it said.<\/p>\n

“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,” it said.<\/p>\n

***<\/p>\n

Budget measures bad for day-to-day operations of small firms<\/h3>\n

The Small Firms Association said it was disappointed with the Government’s decision to approve the Low Pay Commission\u2019s full recommendation of a 79-cent increase in the National Minimum Wage.<\/p>\n

“The decision pushes the statutory baseline from \u20ac14.15 to \u20ac14.94 per hour, dealing a significant blow to small enterprises operating on non-existent profit margins across Ireland,” it said.<\/p>\n

However, the SFA welcomed the decrease in Capital Gains Tax from 33% to 31%, the first decrease since 2013, while it also welcomed the increase in the employer PRSI threshold, the extension of the enhanced Diesel Rebate Scheme and aligning the Enhanced Reporting Requirements with existing payroll reporting cycles which will ease the administrative burden.<\/p>\n

SFA Director David Broderick<\/figcaption><\/figure>\n

SFA Director David Broderick said that many of the measures designed to assist small businesses are adequate for long term investments but bad for day-to-day operations.<\/p>\n

****<\/p>\n

Government misses chance to strengthen competitiveness of Irish-owned businesses<\/h3>\n

ISME warned today that the Budget fails to address the growing structural imbalance between indigenous enterprise and multinational-led growth.<\/p>\n

The association said that while several sensible measures have been adopted, the Government has once again missed an opportunity to strengthen the competitiveness, resilience and scaling potential of Irish-owned businesses.<\/p>\n

Neil McDonnell, the chief executive of ISME, said that Ireland’s long-term economic resilience depends on building a stronger indigenous enterprise base.<\/p>\n

“The growing imbalance between domestic business and multinational activity represents one of the greatest risks facing the public finances, yet Budget 2027 does little to address that challenge,” he said.<\/p>\n

“There are positive measures in this Budget which recognise some of the challenges facing individuals and households, but indigenous businesses are once again at the back of the queue,” he added.<\/p>\n

***<\/p>\n

CIF welcomes expansion of Help to Buy Scheme<\/h3>\n

Andrew Brownlee, CEO of the Construction Industry Federation, said that water, wastewater, energy and transport infrastructure are critical to unlocking land, enabling development and increasing housing supply at the scale required.<\/p>\n

“The increased capital investment announced today, underpinned by the \u20ac275.4 billion National Development Plan, is therefore vital to Ireland’s future growth, housing delivery and to addressing the infrastructure emergency,” he said.<\/p>\n

He also noted that the increase in the Help to Buy Scheme is a positive step that will support more people in accessing home ownership.<\/p>\n

“We welcome the acknowledgment of the impact of rising costs, which have impacted the construction industry, particularly SMEs, this year. Reductions to carbon taxes are positive. However, we continue to await clarity on the details of the fuel subsidy scheme for construction announced earlier this year,” he said.<\/p>\n

“Maintaining momentum in investment in infrastructure is critical and this Budget is a positive signal as the country works towards the successful delivery of Accelerating Infrastructure,” he said.<\/p>\n

***<\/p>\n

Budget misses strategy to ease Exchequer’s reliance on windfall corporation taxes<\/h3>\n

AIB’s chief economist David McNamara said that much of the new spending measures in Budget 2027 are additional standstill resources to keep up with inflation and population growth.<\/p>\n

AIB chief economist David McNamara<\/figcaption><\/figure>\n

He said that significant income tax cuts have been announced, which could be worth an additional \u20ac700-800 a year for middle-income earners.<\/p>\n

“Other tax measures included a reduction in capital gains taxes, and the introduction of the new investment accounts, with a tax-free threshold of \u20ac50,000 and a 1% flat rate charged on funds above this level,” he noted.<\/p>\n

The AIB economist said the continued surge in corporation taxes has enabled these spending increases, but the Government should not bank on these taxes to continue growing indefinitely in the current geopolitical environment.<\/p>\n

“Missing from today’s budget was a clear strategy to begin to ease the Exchequer\u2019s reliance on windfall corporation taxes. Indeed, Ireland’s underlying fiscal deficit will continue to expand in the coming years, and with it the risk of a future shock to the public finances,” he added.<\/p>\n

***<\/p>\n

VFI says \u20ac15m funding a vote of confidence in rural pubs<\/h3>\n

The Vintners’ Federation of Ireland (VFI) has welcomed the Budget measure to provide \u20ac15m in support for the rural pub sector, saying it will provide much-needed breathing space for publicans across the country.<\/p>\n

VFI CEO Pat Crotty said the funding is a vote of confidence in rural pubs at a time when the sector has faced enormous cost pressures.<\/p>\n

Pat Crotty, the CEO of the VFI<\/figcaption><\/figure>\n

“Publicans are already dealing with significant increases in their costs, including the increase in the minimum wage to almost \u20ac15 an hour from January, and today’s measure will give them some much-needed breathing space,” he said.<\/p>\n

More than 2,200 pubs have closed since 2005, Mr Crotty noted.<\/p>\n

\n

“Today\u2019s announcement provides a welcome opportunity to draw a line under that trend and give the sector the confidence it needs to move forward. Many challenges of course remain, but today is a positive day for our rural pubs and the communities they serve,” he added.<\/p>\n

***<\/p>\n<\/div>\n

One of the ‘most business friendly’ Budgets for some time<\/h3>\n

Brendan Murphy, partner at Baker Tilly Ireland, said today’s Budget was one of the most business-friendly Budgets we have seen in some time.<\/p>\n

Mr Murphy said the capital gains tax reduction has been sought for many years, and is a very positive surprise that will have a material benefit for entrepreneurs selling businesses.<\/p>\n

“The plan for a broader review of enterprise taxation and grants is welcome but will be of little immediate comfort to struggling SMEs dealing with auto-enrolment, and energy costs,” he said.<\/p>\n

\n

“The dependence on corporation tax from a handful of multinationals is well known, and while the \u20ac1 billion ISIF scaling fund for domestic businesses is very significant and a step in the right direction, the reality is it will be a long road to build up our indigenous business sector to a size that would be healthier for the economy,” he added.<\/p>\n

***<\/p>\n<\/div>\n

Minimum Wage increase adds to acute cost pressures <\/h3>\n

Retail Ireland has warned that the increase in the National Minimum Wage will “add significant costs to a sector already facing acute cost pressures”.<\/p>\n

“Retail businesses continue to absorb rising labour, energy, logistics and compliance costs in an intensely competitive environment, with limited ability to pass those costs on to consumers,” the group said.<\/p>\n

The organisation welcomed the Budget’s focus on supporting disposable incomes through personal tax measures, as well as investment in skills, training and AI readiness through the National Training Fund and wider workforce development initiatives.<\/p>\n

It said these improve the long-term competitiveness of the economy. <\/p>\n

Retail Ireland Director Arnold Dillon said the increase in the National Minimum Wage adds further cost pressure to a sector that is already operating under “considerable strain”. <\/p>\n

“For many retailers, particularly smaller businesses, margins are under severe pressure and every additional cost has consequences for investment, expansion and job creation,” he said.<\/p>\n

“While businesses are committed to supporting their employees, the cumulative impact of rising employment costs is becoming increasingly difficult to absorb, particularly for smaller retailers operating on tight margins,” he added.<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Business group Ibec said it welcomed Budget 2027’s strong emphasis on workforce transition and praised the decision to unlock \u20ac150m from the National Training Fund (NTF). Ibec said that given the scale of workplace change driven by AI, the employer-funded NTF is an essential resource to ensure workers and workplaces are adequately supported to meet […]<\/p>\n","protected":false},"author":1,"featured_media":49428,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[19,20],"tags":[],"class_list":["post-49427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/49427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=49427"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/49427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/49428"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=49427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=49427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=49427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}