Dublin Chamber has welcomed the measures announced in Budget 2027 to cut bureaucracy, boost investment in firms and support R&D and AI skills, describing them as positive steps towards strengthening Ireland’s domestic enterprise base and overall competitiveness.
Changes to the R&D Tax Credit will help businesses innovate, while a cut to Capital Gains Tax is a step towards encouraging greater investment in firms. The release of €150 million from the National Training Fund will also support the development of AI and digital skills as businesses adapt to rapid technological change. Relaxing the real-time reporting requirements imposed by the Revenue Commissioners will reduce the administrative burden faced by all firms.
Mary Rose Burke, CEO of Dublin Chamber, said:
R&D Tax Credit
“The decision to increase the limits on qualifying outsourced R&D expenditure from 15% to 20%, including for R&D undertaken with universities and higher-education institutions, better reflects how modern innovation is delivered and will help businesses access the expertise they need. The first-year repayment threshold has grown by one fifth to €105,000, helping to ease the cash-flow pressures faced by SMEs and scaling businesses.”
Capital Gains Tax
“The reduction in the Capital Gains Tax rate by two percentage points is a step in the right direction. However, at 31%, Ireland’s rate will remain one of the highest in Europe, limiting the recycling of capital into Irish businesses. We would like to see Government build on this initial reduction by setting out a roadmap towards a more competitive rate of 20%.”
AI and Skills
On the funding for AI skills, Ms Burke said: “The release of €150 million from the National Training Fund for AI skills is a welcome recognition of the need to prepare our workforce for the changes ahead. Businesses see the potential of AI to improve productivity and transform how they operate, but skills remain a significant barrier to adoption. Employers must have a central role in shaping how this funding is deployed, with practical supports that are responsive to the needs of business and designed so that SMEs can access them easily."
Enhanced Reporting Requirements
Dublin Chamber was pleased to also see measures to reduce the administrative burden on businesses, including the move from real-time to monthly reporting under the Enhanced Reporting Requirements (ERR).
“Moving Enhanced Reporting Requirements from real-time to monthly reporting is a practical and welcome step towards reducing the administrative burden on businesses. This is an issue we have consistently raised with Government, and it is encouraging to see recommendations from the Cost of Business Advisory Forum being translated into action."
Savings and Investment Account
“The new Savings and Investment Account will mobilise more of Ireland’s domestic savings for productive investment. Ireland needs to do more to connect domestic capital with Irish businesses looking to start, scale and grow, and this scheme has the potential to help build a stronger culture of investment while making it simpler for individuals to participate.”
Income Tax and Childcare
Dublin Chamber also welcomed measures to support workers and families, including the €2,500 increase in the standard rate income tax cut-off point to €46,500 and measures to reduce childcare costs, including a €550 monthly cap on full-time childcare fees for children up to Senior Infants. The Chamber noted the importance of these measures for employees and for businesses seeking to attract and retain staff.
“Adjusting income tax bands will help protect take-home pay, while lower childcare costs will provide welcome support for working families. Dublin Chamber is pleased to see Government make a start on its commitment to reduce childcare costs to €200 per child per month. However, affordability must go hand-in-hand with availability. Expanding childcare capacity will be essential – affordability means little to a parent who cannot secure a place.”
Housing and Infrastructure
Dublin Chamber said housing and infrastructure delivery remain central to securing the benefits of today’s measures.
Ms Burke continued: “The allocation of €9.4 billion to the Department of Housing is welcome and will be vital to increase the supply of much needed housing. Dublin Chamber has called for at least 30,000 homes annually across the Greater Dublin Area, supported by the water, energy and transport infrastructure needed to deliver them.”
“Metrolink has been allocated €6bn to match the speed with which the project is being delivered, and which has the potential to unlock the development of about 120,000 additional homes in Dublin. A further €2.4 billion has been allocated for transport projects including DART+, which will improve public transport services across the county. The €2.3 billion funding assigned to Uisce Éireann will help progress the Eastern and Midlands Water Supply Project and the Greater Dublin Drainage Scheme. Government must ensure that the bodies responsible have the funding, staff and capacity to move these projects forward. Businesses need to see investment translate into delivery.”
"We welcome the establishment of the Public Spending Efficiency Taskforce. Ensuring public money delivers better services requires a clear focus on reducing duplication, streamlining processes and strengthening accountability for delivery."
"The funding for 1,000 extra Gardaí is needed to tackle growing concerns amongst businesses about safety and security in the city. Dublin must get its fair allocation to boost high visibility policing in the City Centre in particular.”
Ms Burke concluded: “Today’s measures provide welcome support for enterprise and employees. The focus must now be on building on that progress by reducing the cost and complexity of doing business and addressing the infrastructure constraints holding back investment.”