The Government recognises the cost pressures faced by business in recent years, in particular those faced by SMEs, driven by changes to working conditions and wider inflationary pressures. This was a key consideration in the Programme for Government (PfG) and informed a range of measures to provide support for business.
The Cost of Business Advisory Forum was a PfG commitment and was established under the remit of my Department in June 2025. The Forum brings together key representative bodies and senior officials to discuss a wide range of issues impacting businesses such as energy and security of supply, insurance costs, and planning and infrastructure regulations.
I attended the last meeting of the Forum alongside Minister Dillon and Minister Smyth, and reaffirmed the commitment to bring this report to Government. The final report will play a key role in shaping future approaches to supporting a competitive, resilient, and sustainable enterprise environment.
In March and April, the Government introduced a substantial package of fuel supports to address rising energy costs in 2026. These include measures such as reductions in fuel duties and targeted supports for sectors like transport, agriculture and fisheries.
I and my officials maintain regular engagement with the Minister for Finance and his officials on matters related to tax policy. Every year, my Department submits a Pre-budget Submission to the Department of Finance outlining our recommendations for the year ahead and will do so for Budget 2027. I also maintain engagement with the Minister for Social Protection on matters pertaining to PRSI. Budget 2026 introduced a range of measures to benefit SMEs. The reduction in the VAT rate for hospitality from 13.5% to 9%, with effect from 1 July 2026, can be expected to be of significant benefit to SMEs. Budget 2026 also saw an increase in the Employer PRSI threshold to ensure that employers do not pay the higher rate of PRSI for full-time workers earning the minimum wage.
My Department has ensured that access to grants and support programmes have been simplified through the launch of the National Enterprise Hub, which is hosted and operated by Enterprise Ireland.
My Department also ensures there is rigorous implementation of the SME Test. The SME Test tasks policy makers to consider the impact that any new policy, legislation, or regulation, may have on SMEs, and to mitigate against those impacts where appropriate.
I would like to assure the Deputy that the Government continues to actively monitor cost developments across all sectors of the economy. We will continue to ensure that actions aimed at supporting SMEs in the Programme for Government are implemented in an effective and timely manner.
