Retail Ireland reaction to Budget 2025

Retail Ireland, the Ibec group that represents the retail sector, today said the personal tax changes and cost of living measures in Budget 2025 will support spending in the domestic economy. However, despite some welcome targeted measures, spiralling labour market costs are set to remain a major concern. This issue will need ongoing government attention into the future.

Retail Ireland Director Arnold Dillon said: “Tax cuts and other cost of living measures will benefit household finances. This should support consumer sentiment and retail spending as we approach the key Christmas trading period. The increase in the Small Benefit Exemption annual limit from €1,000 to €1,500 and increasing the number of payments that can be made in a single year is welcome in this regard.

“While the wider economy is performing well, many retail businesses are grappling with major labour market cost increases. The Government signalled its intention to put in place a more realistic timeframe for the introduction of key labour market reforms. It is important that this is followed through.

“Crime and security concerns remain a major challenge in many town and city centres. The significant additional funding for the Gardai is much needed and very welcome. This should make a meaningful difference into the future. It is crucial that short-term measures are also taken to ensure a visible Garda presence in urban centres in the run up to Christmas.”