Last week, the Government delivered Budget 2026, placing a strong and welcome focus on infrastructure and housing. The €19.1 billion capital investment commitment, an increase of €2 billion on last year, reaffirms the Government’s priorities under the National Development Plan in housing, transport, energy, and reflect areas long championed by Dublin Chamber.
While this investment will strengthen Ireland’s long-term competitiveness, the same ambition was not extended to indigenous enterprise. The modest adjustments to supports for entrepreneurs fall short of the change needed to address the funding gap facing startups and scaling firms. For Dublin Chamber, failure to reduce the rate of Capital Gains Tax to 20% for disposals of investments in unquoted, actively trading Irish enterprises was a missed opportunity in Budget 2026.
Below, we’ve highlighted Dublin Chamber’s key takeaways from Budget 2026. You can read our full analysis of measures against member priorities here.
Infrastructure
We welcome the increased capital allocation and the Government’s renewed commitment to delivering critical infrastructure projects. However, predictable execution now matters more than repeated commitments. We look forward to Government’s detailed sectoral investment plans due in November, which will set out how funding will be allocated and call out specific projects. For Dublin’s economy to thrive, it is essential that this funding supports the Eastern and Midlands Water Supply Project, the Greater Dublin Drainage Scheme, and EirGrid’s Powering Up Dublin - projects all vital to unlocking new housing and sustaining growth across the Greater Dublin Area.
Housing
The Budget’s measures to promote higher density living and urban renewal are also positive steps toward a more vibrant, sustainable Dublin. Reductions in VAT to 9% for apartment construction, enhanced tax deductions for apartment developments, and the increase in the Living Above the Shop relief from €200,000 to €300,000 will make compact urban living more viable. The introduction of a Derelict Property Tax is also encouraging, but its success will depend on consistent local authority implementation and a more agile planning system.
Enterprise and Competitiveness
While the Budget strengthens Ireland’s long-term competitiveness through infrastructure investment, it fails to match that ambition for indigenous enterprise. Budget 2026 offered little to stimulate entrepreneurship and scaling among Irish-owned firms. The decision not to reduce Capital Gains Tax (CGT) to 20% for investments in unquoted, actively trading Irish companies represents a missed opportunity to mobilise private capital and reward risk-taking. Similarly, the modest increase in the Entrepreneurs’ Relief lifetime limit from €1 million to €1.5 million will not meaningfully change investor behaviour.
On a positive note, however, Dublin Chamber did welcome the increase in the R&D Tax Credit from 30% to 35% and the higher first-year repayment threshold of €87,500. Similarly, the modest increase in the Entrepreneur Relief lifetime limit from €1 million to €1.5 million will do little to encourage experienced entrepreneurs to set up new businesses in Ireland or unlock the scaling potential of existing firms.
Rising Costs
Throughout our pre-Budget engagement, Dublin Chamber emphasised the mounting cost pressures faced by businesses. While the Government’s decision to reduce VAT for the hospitality sector in Budget 2026 provides welcome relief for some vulnerable firms, many other sectors continue to face significant financial strain. It is vital that further cost-offset measures, particularly for SMEs across the board, are prioritised under this Government without delay.
Public Safety
Public safety remains a cornerstone of any thriving city. Dublin Chamber welcomes the €77 million allocation for the recruitment of up to 1,000 new Garda trainees in 2026. Increased Garda visibility and a strong frontline presence are vital to ensuring Dublin remains a safe and welcoming environment for residents, workers, and visitors alike.
See Dublin Chamber’s full analysis of Budget 2026 against member priorities here.