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ISME Response to Budget 2027
2026-10-06
By Marketing（https://isme.ie/author/isme-marketing/）
Some positive measures but Budget fails to address long-term risks facing indigenous enterprise
Dublin, 6 th October 2026: ISME has welcomed some positive measures announced in Budget 2027, but warned that the Budget fails to address the growing structural imbalance between indigenous enterprise and multinational-led growth.
The association said that while several sensible measures have been adopted, the Government has once again missed an opportunity to strengthen the competitiveness, resilience and scaling potential of Irish-owned businesses.
Neil McDonnell, Chief Executive of ISME , said: “ Ireland’s long-term economic resilience depends on building a stronger indigenous enterprise base. The growing imbalance between domestic business and multinational activity represents one of the greatest risks facing the public finances, yet Budget 2027 does little to address that challenge. There are positive measures in this Budget which recognise some of the challenges facing individuals and households, but indigenous businesses are once again at the back of the queue.”
Areas of concern
ISME expressed disappointment that a number of significant competitiveness issues remain unaddressed.
The failure to address simple, low-cost measures to assist SMEs to scale-up is concerning. The Central Bank, IFAC, ESRI and NCPC have all income concentration from foreign multinationals as a national risk. Budget 2027 was a missed opportunity to mitigate this risk.
We are still dangerously dependent on foreign owned businesses for our corporation tax, income tax and VAT take.
The 5.6% increase in the National Minimum Wage is running at one and a half times the rate of inflation, and almost twice the rate of wage inflation. It will impact consumer prices in those services businesses where it is passed on.
Close company rules penalising small business from retaining earnings should have been eliminated.
The decision to maintain the deemed disposal rules on funds makes no sense. This was never a good idea and should have been terminated this year.