Budget 2026 must provide certainty for pressurised SME sector – Clendennen

Ireland’s small and medium-sized enterprises (SMEs) are facing a crisis of confidence and need urgent government action, a new report produced by a Fine Gael TD has found.

Deputy John Clendennen today (Thursday) launched his report; “Backing Business: A Budget Blueprint for SMEs”, which highlights that two out of three Irish SMEs are not confident that their business will survive into the future.”

Deputy Clendennen explained: “This report draws on responses from over 600 business owners who were surveyed. All are citing labour costs, soaring energy bills, rising insurance premiums and heavier tax demands as serious pressures which threaten their viability.

“It’s very evident that there must be decisive measures in Budget 2026. SMEs are the backbone of our economy and our communities. But today, too many are living with crippling uncertainty. Almost two-thirds of business owners tell us they don’t know if they can keep going. That is a stark warning Government cannot ignore.

“What businesses need most is predictability. They can deal with change, but they cannot plan for the future when every year brings new costs and unknowns. In a time of economic challenge and uncertainty, it is essential this Government does everything it can to protect jobs.”

The Backing Business report sets out five key priorities for Government:

1. Reducing the Tax Burden – Restore the 9% VAT rate for labour-intensive sectors and consider PRSI and Excise Duty rebates.
2. Easing Labour Cost Pressures – Extend the timeframe of the Living Wage rollout to 2029 and pause further employer obligations until a full impact assessment is completed.
3. Supporting Competitiveness – Expand the role of Local Enterprise Office services and open new trade opportunities.
4. Cutting Energy Costs – Enhance and expand energy schemes for SMEs and provide a clear roadmap for renewables.
5. Tackle Insurance Premiums – Increase competition and transparency while cracking down on fraud.

“This blueprint is about giving SMEs a fighting chance. With the right decisions in Budget 2026 we can restore confidence and safeguard businesses that are vital to Ireland’s future and I’m certain Fine Gael in government are best placed to make those decisions,” Deputy Clendennen concluded.