IFA say cost of business continues to escalate

IFA President Francie Gorman said today’s Budget contains a number of measures consistent with our asks to support farmers to deal with escalating costs but the cost of doing business continues to escalate at farm level and more will need to be done to address this.

It’s important that there will be a full top-up of 200% on the fertiliser support scheme, introduced by the EU Commission. The overall fund of €46m is likely to mean €34/tonne for farmers. We will be engaging with the Department on the detail of this scheme which must be paid out as a matter of urgency.

“The budget for the Department of Agriculture, Food and the Marine has remains broadly similar to 2026 at €2.3bn which is disappointing in the context of a 6% increase in overall Government spending,” he said.

“On the expenditure side, there is an increase in funding for some schemes, but our concern is that there may not be enough to avoid linear cuts to individual farmer payments particularly in our most vulnerable sectors. We will be taking this up with the Minister for Agriculture as any cuts must be avoided,” he said.

The fuel rebate scheme introduced earlier this year has been extended to year end and carbon tax increases will remain suspended.

“Our view is that the carbon tax should be removed, but today’s announcement is a recognition that it is an issue for rural Ireland in particular. We hope today’s announcement will be the Government’s first turn in a three-point turn on Carbon Tax.”

“We had also looked for those farmers impacted by a TB breakdown to be properly compensated for the losses incurred. The increase in the valuation ceilings by €500 per animal will address that situation to some extent,” he said.

IFA Farm Business Chair Bill O’Keeffe said overall the Budget will see modest improvements in what people have in their pockets, with income tax cuts helping farm households that are struggling to cope with rising bills.

The increase in the Flat Rate Addition for non-VAT registered farmers from 4.5% to 4.8% will bring it in line with the livestock rate and this will be worth €30m to farmers in 2027.

There is a modest increase in the allocation for the Straw Incorporation Measure (SIM), but tillage farmers will be disappointed that funding for the tillage support scheme has remained static despite the significant cost increases in that sector.

Bill O’Keeffe said IFA had looked to have VAT on all non-oral vaccines reduced from 23% to 0%, but the Govt decided to bring it down to 9% for respiratory vaccines only.

“On the inheritance threshold, the increase of €20,000 to €420,000 is well short of what was needed to cover valuation inflation in recent years.”

In conclusion, IFA President Francie Gorman said: “I want to acknowledge all the lobbying done by our officers around the country to make sure that a number of the measures we looked for have been included in the Budget. Our work to achieve the rest of our objecti

Budget falls short of what is needed to support family carers, says Family Carers Ireland

Family Carers Ireland has said Budget 2027 falls short of what is needed to support family carers and fails to respond to the growing care challenge facing Ireland.

The Budget includes a €10 increase in weekly social welfare payments, including Carer's Allowance and Carer's Benefit, a €5 increase in Fuel Allowance, the introduction of a €500 Cost of Disability Payment and increases in the income thresholds for Carer's Allowance.

While welcoming measures that will provide some additional support to carers, Family Carers Ireland said the overall package falls short of what is needed to address the financial pressures, cost-of-living, lack of respite and growing demand for care facing families across the country.

The failure to abolish the Carer's Allowance means test represents a missed opportunity. Having significantly increased the income disregards in recent budgets, the Government had already done most of the heavy lifting. While the thresholds have increased by €150 for a single person and €300 for couples, Budget 2027 provided an opportunity to complete a long-promised reform and deliver a lasting change for thousands of family carers. Instead, it chose to stop short.

The Budget comes at a time when inflation is at a 3 year high, driven largely by higher energy prices. Caring households are particularly exposed to these costs due to the additional heating, electricity and transport costs associated with providing care at home.

Despite the increase in Fuel Allowance, just 4% of Carer's Allowance recipients currently receive the payment, meaning the vast majority of family carers will see no benefit from one of the Government's flagship cost-of-living measures.

Family Carers Ireland's State of Caring research found that 71% of family carers are struggling to make ends meet, 75% have never received respite and 55% have paid privately for services and supports that should be publicly provided by the State.

The Budget also follows the publication of new research from the ESRI which projected that demand for care among people aged over 50 will increase by between 49% and 123% by 2040 and concluded that additional supports for family carers will be essential if they are to remain a core part of Ireland's long term care system. This underlines the urgent need to fully fund and deliver the Carer Guarantee, ensuring family carers have access to the information, training, respite, and practical supports needed to sustain care at home as demand continues to grow.

The Government has announced 489 additional residential care packages, 1,500 new day service places, an increase in respite provision, a further 191,000 home support and personal assistance hours, and an expansion of the disability workforce by 930 staff next year. While these commitments are welcome, the real test will be whether these additional packages, hours and frontline staff are delivered in practice.

 Sharon Foley, CEO of Family Carers Ireland, said:"While there are some welcome measures in today's package, many family carers will struggle to see how this Budget changes the reality of their everyday lives.

"For too many families, the pressures remain the same. Rising costs, inadequate services and little or no access to respite. This Budget asks family carers to continue carrying huge responsibility while offering too little in return."

Family Carers Ireland said Budget 2027 represents a missed opportunity to prepare for Ireland's future care needs and warned that failing to invest in family carers now will only increase pressure on families and public services in the years ahead. The organisation said the ESRI projections should have been a wakeup call for Government, but there is little in today's package to suggest that warning has been taken seriously.

"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.