Technology Ireland reaction to Budget 2025
Technology Ireland, the Ibec group that represents the technology sector, has welcomed the Government’s announcement in Budget 2025 to unlock €1.5bn from the National Training Fund over the coming years.
Una Fitzpatrick, Technology Ireland Director, said “In the Technology Ireland Budget 2025 submission we called for Government to prioritise skills, growth, founders and digital delivery. With over 260,000 people employed in the digitally intensive sector, a skilled labour force is key to our ability to develop, attract and retain the vibrant tech sector in Ireland. Today, the Government has made an important commitment to unlocking the National Training Fund. The effective utilisation of this investment is paramount for Ireland to successfully navigate the green and digital transitions.
Advancements in generative AI and transformational technologies promise a cross-sectoral revolution which must be supported by proactive efforts in workforce development and lifelong learning. We are eager to collaborate on the rollout through additional funding for upskilling, reskilling and apprenticeships as the sector continues to invest in AI and emerging technologies. It is imperative that these funds, which have come from employers’ contributions are effectively used to boost businesses and their employees and not diverted as a means to address under investment in further and higher education.’’
Technology Ireland highlighted in its pre-Budget submission the high priority digitalisation has been assigned by the European Commission and was disappointed to not see further ambition in this budget to increasing the volume and pace of digitalisation in the delivery of public services. The Government must lead by example to bolster state capacity by increasing investment in and procurement of modern digital government and public services. The Government has already outlined its ambitions in its strategy ‘Harnessing Digital: Digital Ireland Framework’ and ‘Connecting Government 2030’, the public sector ICT Strategy. Full implementation and resource of budget allocations to ensure their delivery is critical to drive further digital transformation in public sector projects.
Technology Ireland welcomes the increase in supports for start-up and scaling companies. Ireland ranks 5th in Europe under the ‘Digital Economic and Society Index’ for unicorns; a unicorn is a privately owned start-up company, which has reached a valuation of $1 billion (currently about €867 million) or more, the term “unicorn” refers to the rarity of start-ups which achieve this status among the population of start-ups. Ireland must be ambitious in its support for start-up and scaling companies to enable them achieve unicorn status. Measures such as the increase in relief available under the Start-up Relief for Entrepreneurs from €700k to €900K, the increase in the amount reimbursed in year one under the R&D Tax Credit Scheme from €50k to €75k and enhancement of section 486C small company start up corporation tax relief are all important in ensuring we continue to build a thriving start up and scaling tech sector in Ireland.
