Businesses require long-term vision from Government in budget, says Chambers Ireland

CEO said the last year has been 'tumultuous' for SMEs despite the wind-up of pandemic restrictions

He said many small firms have struggled to keep pace with “a myriad of financial, administrative, and regulatory requirements infringing on business margins and constraining capacity.” 

A business representative body has urged the Government to prioritise long-term targets and infrastructure investment amid a looming general election.

In its pre-budget submission, Chambers Ireland recommended the focus should be placed on improving Irish competitiveness through the deployment of the national training fund, removing the €10m cap on family business transfers, and speeding up the delivery of keystone urban infrastructure transport programmes such as Metrolink, the Cork Suburban Rail project, and the Dart extension projects.

“At this important juncture in Irish politics, the Government have an opportunity to make a strong economic statement by committing crucial investment to our essential infrastructure and making long-term commitments that will serve our future competitiveness,” said Chambers Ireland chief executive Ian Talbot.

Budget 2025 is set to take place on October 1 and many analysts have predicted that a general election will occur shortly after. 

Yet, the recent summer economic statement suggested that the upcoming budget will be expansionary.

The overall bumper budget package of €8.3bn will contain €6.9bn in additional public spending and a tax package of €1.4bn. 

Overall public spending will increase by 6.9% which once again exceeds the Government’s spending rule of not increasing expenditure by more than 5% annually.

Meanwhile, Mr Talbot also said the last year has been “tumultuous” for SMEs, despite the wind-up of pandemic restrictions which impacted many businesses in hospitality and retail.

He said many small firms have struggled to keep pace with “a myriad of financial, administrative, and regulatory requirements infringing on business margins and constraining capacity.” 

In addition, he said capacity constraints continue to weigh on businesses.

“The risk of overheating the economy must be balanced carefully with the social and economic impact arising from not building capacity for the growth we are experiencing and expect to continue,” he said.