Yesterday's Budget 2026 announcement has prompted varying responses from representative bodies around Ireland.
Ireland's largest representative body for retailers REI warned ahead of the Budget that a proposed increase in minimum wage would 'decimate' the retail industry.
Minimum wage will increase by 65c to €14.15 on 1 January 2026.
Following the Budget announcement, CEO of REI Jean McCabe said, "It is scarcely believable that the minimum wage will rise yet again to a wholly unsustainable level, with nothing to support retailers trying to manage this increase.
"This latest hike means the statutory minimum wage will have increased by 44% 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.
"The minimum wage has risen at double the rate of inflation.
"This discrepancy is having a major negative effect on an industry that employs a disproportionate amount of minimum wage workers.
"Retailers are already under intense pressure from a variety of costs including the standard rate of VAT and PRSI as well as persistently high energy bills, the introduction of statutory sick pay and the pending introduction of pension auto-enrolment.
"We saw a 112% increase in store closures in Q2 this year compared with the quarter before, and this rate will accelerate even further as a result."
McCabe also clarified that the group's position on the matter was not anti-worker.
She said, "Business owners want to look after their people.
"But the harsh reality is that many minimum wage workers will not have jobs to go to as many businesses are not in a position to shoulder these cost increases alone.
"Any gains for employees as a result of this Budget will be short-lived."
Sandyford Business District said the Budget delivered 'relief' for SMEs as it promised to support long-term growth.
The government announced a new market cap exemption Stamp Duty threshold for Irish SMEs and start-ups trading on regulated markets in order to support growth.
The new threshold is €1 billion, and for companies below this threshold, the 1% Stamp Duty charge paid on shared transactions will not apply.
CEO of SBD Ger Corbett welcomed the measure and referenced the group's pre-Budget submission, which included a VAT reduction to 9% for construction, hospitality, and energy bills until 2030, as well as an increase and expansion of the R&D tax credit from 30% to 35%.
Corbett said, "We are delighted that the Minister and Department of Finance has heard us, and that a number of these measures were included in Budget 2026.
"Going forward, we urge the government to commit to funding and progressing the development of incubation hubs in business districts like Sandyford, enabling entrepreneurs to benefit from world class innovation and expertise.
"Many of the budgetary measures brought in by the government [...] will help businesses of all sizes address the rising cost of doing business, while securing Ireland's economic future."
Smokers' rights group Forest Ireland called the increase in excise duty on tobacco products "unfair" and "counter-productive."
Packs of 20 cigarettes saw a 50c increase in excise duty from midnight, while excises on other tobacco products will be implemented on a pro-rata basis.
Reacting to the change, director of Forest Ireland Simon Clark said, "Purchased legally, tobacco costs more in Ireland than any other country in Europe.
"This latest tax hike, while relatively modest compared to last year, will drive even more smokers to the black market.
"Alternatively, many will buy their tobacco abroad where the cost is often significantly cheaper than at home.
"Punishing consumers, especially those from poorer backgrounds, by repeatedly raising the tax on tobacco is not only unfair.
"It's also counter-productive because it will hurt legitimate retailers in Ireland, many of whom can't afford the loss of income from the sale of cigarettes and other tobacco products."
DBI called for tax incentives to help drive digitisation and artificial intelligence (AI) in Ireland to prevent the country from 'falling behind.'
As a result, the group welcomed the Budget announcement this week.
Speaking about the Budget, spokesperson for DBI dp Fitzgerald said, "Digital Business Ireland's pre-Budget submission sought additional supports for businesses for digital transition and AI uptake.
"As such, we are wholly supportive of the government commitments in Budget 2026 to strengthening the resilience and competitiveness of Irish enterprise, and particularly the supports outlined for digital innovation."