Budget 2026: 'No reward' for sole traders 

Budget 2026 leaves independent operators frustrated

Pamela Burke of Burke By Design, Pearse Street, Clonakilty, West Cork. Picture: Dan Linehan

With every passing year, the pressure on independent business operators in Ireland grows.  "There's no reward for keeping your doors open," says independent trader Pamela Burke. 

Pamela runs Burke By Design, a gift and designware outlet on Pearse Street in Clonakilty. "I started my business as a design consultancy in 1998, and opened my first shop in 2000 on Spillers Lane, and moved to my current shop on Pearse Street in 2003," she said.

Business has changed a lot in the decades since. When the downturn came in 2008, Pamela pivoted from solely a design consultancy to offering everything from designer and fashion bags to scarves and scents. 

It's a labour of love for Pamela. But Budget 2026 has brought little in the way of incentive.

The Vat reduction for hospitality and hairdressers which will be introduced in 2026 won't extend to businesses like Pamela. "I welcome the Vat reduction for my neighbours but why does the Government not include small independent, retail businesses who face enormous challenges in maintaining competitiveness and affordability? These small businesses are at the heart of our communities," said Pamela.

VAT on gas and electricity will be locked at 9% until 2030 but there was no repeat of another notable initiative from Budget 2025, the Power Up grant. This gave up to €4,000 to assist businesses in hospitality, retail, and beauty sectors to assist with energy costs. The €170m scheme was administered by local authorities through the Dept of Enterprise, Trade and Employment.  "Every self-employed person I have spoken with has mentioned this initiative. No one was frivolous: everyone had to put that money back into their business. It was fantastic and made a real difference," said Pamela.

Other general measures announced in Budget 2025, like funding for an extra 1,000 garda recruits are welcomed by Pamela, as is the €1.6bn funding for Uisce Éireann in 2026. "We all want and share the same goal: access to safe, clean, and reliable water but I would welcome greater transparency regarding how these funds will be allocated and spent," she said.  

For businesses like Pamela's, competition from global retail behemoths have changed the landscape entirely. "An initiative as simple as enabling small independents to offer free delivery could make a significant difference," she said. "Why couldn't government, in partnership with An Post, explore the possibility of providing a programme that allows small businesses to offer a free delivery service?

"We want to keep generational businesses in Ireland. Last week, I was told of two second generation businesses closing in Clonakilty.

"Small businesses are at the heart of towns in Ireland. They are at the heart of the community. Shein and Amazon don't pay rates. I don't have any staff and if I step out of my business unexpectedly, there is no pause on rates. 

"Why exclude us when competing with giants online? There's no reward for trading."