Clare’s opposition TD claims Budget 2026 prioritises landlords and developers while doing nothing to make it easier to rent or buy a home.
As the dust settles on the €9.4 billion suite of measures announced on Tuesday, questions are arising as to the effect it will have on the average citizen.
Addressing the Dáil yesterday, Public Expenditure Minister Jack Chambers said this year’s budget “lays the foundations for our future” and “shifts the focus from isolated departmental or sectoral needs” to “broader strategic priorities”.
Among the main takeaways are the increase of the 2% rate band for USC by €1,318 to €28,700 and the €5 rise in the weekly fuel allowance rate, with this now extended to those eligible for the working family payment.
The €5,000 VRT relief for electric vehicles has been extended to the end of 2026 while motorists will face a rise of just over two cents per litre at fuel pumps.
When it comes to housing, the VAT rate for completed apartments has been slashed from 13% to 9% to the end of 2030, while developers will enjoy 0% corporation tax on the construction of cost rental units.
Uisce Éireann funding has been boosted by 29% to encourage development, while for tenants, the rent tax credit of €1,000 has been extended for three years.
Shannon Sinn Féin TD Donna McGettigan doesn’t believe the measures will improve conditions for those renting or looking to buy.
Reacting to the announcement in the Dáil, Labour Finance Spokesperson Ged Nash described it as a “budget for burger barons and big builders”.
Tulla Fianna Fáil Minister of State Timmy Dooley insists small developers have to remain profitable in order to continue to build.
Meanwhile, an Ennis-based retail lobby group insists the planned increase in the minimum wage will put additional strain on a sector that’s already crumbling under cost increases.
Business representatives across the county have been expressing mixed views in the wake of Budget 26.
Retail Excellence Ireland, which is the largest representative body for the retail industry in the country, has warned the planned increase in the minimum wage is a “short-sighted and anti-business” measure which will lead to many business closing their doors, as well as job losses.
The statutory minimum wage will rise to €14.15 from January , which represents a 44% increase in the six years from January 2020 to January 2026.
In comparison, the average cost of living in January 2025 was 19.8% higher than in January 2020.
Clare-based CEO of REI, Jean McCabe says this means the minimum wage has risen at double the rate of inflation and this discrepancy is having a major negative effect on an industry that employs a disproportionate amount of minimum wage workers.
Representatives from the tourism and hospitality sectors have been welcoming the restoration of the lower vat rate for food services announced in the budget.
The return to 9 percent from the current 13.5 percent will come into effect from July 1st next year.
Chair of the Clare Tourism Advisory Forum says the reduction is very good news for cafés, restaurants and pub businesses in small local communities that provide not only a food and beverage service, but a social outlet for many elderly.
Ennis Hotelier, Sean Lally hopes it will be made a permanent measure.
