"Budget will help many rural pubs keep their lights on" say VFI

The Vintners’ Federation of Ireland (VFI) has welcomed the Government’s decision in Budget 2027 to provide €15 million in support for the rural pub sector, saying it will provide much-needed breathing space for publicans across the country.

VFI CEO Pat Crotty said: "Today’s announcement is a vote of confidence in our rural pubs at a time when the sector has faced enormous cost pressures. We have been making the case throughout this campaign that pubs are more than just businesses. They are at the heart of communities across Ireland, supporting local employment, tourism and acting as a social anchor in our towns and villages."

Mr Crotty said the VFI welcome this support for rural pubs.

"€15m in support is a great starting point and we will work with it. We look forward to working with Government to make sure the support is delivered in the most effective way possible.Publicans are already dealing with significant increases in their costs, including the increase in the minimum wage to almost €15 an hour from January, and today’s measure will give them some much-needed breathing space. For many smaller rural pubs, these pressures have become increasingly difficult to absorb."

"We want to thank the Government for listening to the concerns of publicans and recognising the need to support the sector. This is a significant step forward and will give many publicans greater confidence in the future of their businesses.

We also want to acknowledge the immense cross-party support our campaign has received. TDs and Senators from across the House stood with publicans and recognised the importance of protecting the future of local pubs."

More than 2,200 pubs have closed since 2005. Today’s announcement provides a welcome opportunity to draw a line under that trend and give the sector the confidence it needs to move forward.Many challenges of course remain, but today is a positive day for our rural pubs and the communities they serve.”

Budget measures fall far short for families facing mounting hardship, says Independent Ireland leader

Independent Ireland Leader Michael Collins has criticised the Government’s Budget, saying the measures announced today do not go nearly far enough to ease the financial pressure being faced by families across Ireland.

Deputy Collins said that while some of the measures announced by Government will provide limited relief, the overall package fails to match the scale of the hardship experienced by households struggling with the cost of living, housing, energy, transport and everyday essentials.

“Families across Ireland are being asked to stretch their incomes further and further just to get through the month. They are facing higher housing costs, expensive childcare, rising insurance premiums, energy bills and the basic cost of putting food on the table.

“Against that backdrop, this Budget simply does not go far enough.

“The Government can point to tax changes and temporary measures, but families need meaningful and immediate relief. They need to feel a real difference in their household finances, not be told that things are improving while they continue to struggle.”

Deputy Collins said that the Government’s decision to extend reduced fuel excise rates and reduce the carbon tax on kerosene and natural gas was welcome, but questioned why stronger action had not been taken to reduce household energy and transport costs over the longer term.

“Extending temporary fuel measures is better than allowing them to disappear overnight, but this Government should be much more ambitious.

“People who depend on their cars to get to work, bring children to school and attend appointments cannot simply switch to public transport. For many families, the cost of running a car is unavoidable.

“Likewise, households should not have to choose between heating their homes properly and paying other bills. The Government has the resources to do more.”

The Independent Ireland Leader also criticised the emphasis placed on tax reductions, arguing that the benefits will not be sufficient for many households facing the greatest financial pressures.

The Government has announced a €1.3 billion personal income tax package, including increases to tax credits and changes to the standard rate cut-off point.

“A tax package sounds substantial when presented as a headline figure, but what matters is what families actually have left in their pockets at the end of the week.

“For many households, any increase in take-home pay will be swallowed up by rent or mortgage payments, childcare, groceries, energy, insurance and transport.

“We need a Budget that tackles those costs directly rather than relying primarily on income tax changes.”

The Independent Ireland Leader said the Government’s plans to invest an additional €1 billion in the Future Ireland Fund must also be considered against the immediate needs of people struggling today.

“Of course we have a responsibility to plan for future generations. But we also have a responsibility to the generation that is struggling to make ends meet right now.

“The Government is forecasting a surplus of €9.5 billion in 2027. When the State is in such a strong financial position, people are entitled to ask why families experiencing serious hardship are not receiving substantially greater support.

“Saving for the future is important, but you cannot tell a family that is struggling to pay its bills that their Government has billions available but that relief must wait.”

Michael Collins also said that Government must do more to address the structural causes of financial pressure, particularly housing and the cost of living.

“The biggest failure of this Budget is that it does not properly address the underlying problems driving household hardship.

“We need far greater urgency on housing supply and affordability. We need to make it easier for working families to build a secure future rather than simply helping them survive from one pay cheque to the next.”

On measures for small and medium-sized businesses, Deputy Collins said the increase in the employer PRSI threshold was welcome but insufficient on its own to address the pressures facing businesses.

“Small businesses are facing enormous costs and uncertainty. A modest change to the PRSI threshold will help some employers, but it does not address the wider burden being placed on businesses through energy costs, insurance, regulation and taxation.

“If we want to protect jobs and keep businesses operating in towns and communities across Ireland, Government needs to take a much more comprehensive approach.”

The Independent Ireland Leader concluded:

“Ireland is in a fortunate position. We have strong public finances, a growing economy and significant resources available to Government.

“The question is how those resources are being used.

“This Budget should have been an opportunity to make a substantial difference to families who are struggling. Instead, many will look at what has been announced and ask: is that really all?

“Independent Ireland believes we can and must do better.

“The Government should be using Ireland’s strong financial position to tackle the pressures facing households today, while investing in the infrastructure and services that will secure our future.

“Families do not need more promises. They need meaningful action and meaningful relief.

Macra welcomes measures on succession farm partnerships

Macra has welcomed measures introduced today on sucession farm partnership as the tax credit for registered farm partnerships that are registered on the succession farm partnership register on or after 1 January 1 2027 is being increased from €5,000 to €10,000 (available for up to 5 years).
The minimum three-year holding period before which assets can be transferred under the scheme's rules is being removed for applications made to enter a Succession Farm Partnership on or after  January 1 2027.
Macra welcomes both of these measures, particularly the removal of the three-year land transfer rule, which was a trap for some young farmers who entered partnerships after the age of 32. This was a key ask in Macra's Budget 2027 submission; however, this is a policy change to a rule which should have never been allowed in the first place. This necessary rule change simply cannot be a substitute for our long-called-for Succession Scheme.
“Fixing a flaw in an existing scheme is not the same as investing in succession, and the Minister can’t dress up policy corrections as real action on succession,”  said Macra president Josephine O’Neill.
Macra put forward a very achievable €5 million pilot Succession Scheme which would get the ball rolling on a CAP-supported Succession Scheme and support 100 farm families.
“Macra’s proposal supports both generations. The incoming young farmer could receive up to €180,000 in their first year to establish themselves, while the outgoing farmer could receive up to €180,000 over five years. €5 million is a relatively modest commitment in the context of the national Budget, but it could provide Government with a practical model that can then roll into a longer-term CAP Succession Scheme."
In reaction to the increased tax credit for registered farm partnerships, Macra President Josephine O'Neill welcomed the increase. However, participation in Succession Farm Partnerships remains very low, with just 162 active Succession Farm Partnerships currently registered.

Macra welcomes today’s announcement of a €2,500 increase in the standard rate cut-off point to €46,500, bringing the threshold beyond the €46,000 increase called for by Macra.

Macra also welcomes the €125 increase in the personal, employee and earned income tax credits to €2,125, which will reduce the income tax liability faced by workers.

The threshold for the 3% USC rate is being increased by €1,600, from €28,700 to €30,300. That means income between €28,700 and €30,300 will remain subject to 2% USC rather than moving into the 3% band. Macra continues to call for further USC reductions - a higher 2% band ceiling remains necessary.

Inheritance Tax

Inheritance tax thresholds have increased across all three groups.
The Group A threshold will rise from €400,000 to €420,000, Group B from €40,000 to €44,000 and Group C from €20,000 to €22,000.
This is a small but welcome move for farm succession.

Microgeneration Tax Disregard

Macra welcomes the increase in microgeneration tax disregard, which it had called for in its pre-budget submission.
We welcome the increase in the tax-free income threshold for microgeneration from €400 to €600. This is a positive step towards encouraging farmers and rural households to invest in renewable energy and sell surplus electricity back to the grid. However, we continue to call for this to rise to €1,000 in order to strengthen the incentive for rural families.