The upcoming Budget presents the Government with an opportunity. The State has both a significant forecasted Budget surplus and is running a significant surplus in our Balance of Payments. We are in the enviable position of being flush with the resources we have built through exporting, rather than borrowing from abroad.

The understandable pre-election temptation will be to ‘have one more for the road’. This would be a mistake. Spending the whole surplus, or worse still borrowing, to continue with temporary giveaways to households who don’t all need them, would represent a significant risk to the public finances. We are entering a period of major change in the global economy. Revenues may be volatile; we need to leave room for risk.

In our full submission we set out in detail over 75 evidence-based policy recommendations. These policies would drive Ireland’s ability to compete in an increasingly competitive global environment by addressing these major deficits. This document gives a brief overview of some of the key strategic asks. Sharpening our competitive edge is within the gift of the Government. The major choice in October will be between investing in our continued prosperity or having one-last giveaway today.

Budget 2025 Priorities:

• Ireland's economic model faces a new global context. Despite recent turbulence, the economy is stronger, but state-driven competition, geopolitical tensions, and reduced trade openness challenge small countries like Ireland. Competing with larger countries on subsidies is impossible, so focusing on our strengths is crucial for maintaining high living standards.
• To ensure competitiveness, we must avoid past mistakes and address high costs. The National Competitiveness and Productivity Council highlights our rising costs. Budget 2025 should introduce an Employer PRSI rebate, simplify the corporate tax regime, and re-establish the ‘Better Regulation Unit’ to ease business burdens.
• Balancing low carbon goals with reduced energy costs is vital. Budget 2025 should introduce measures like a low carbon super deduction, expand the capital allowance regime, and ringfence €400 million for a Carbon Contracts for Difference scheme, to be allocated over a number of years.
• Investing in skills is essential. With a €2 billion surplus in the National Training Fund (NTF) by 2025, we should use it to upskill the workforce. Treating NTF spending like other specific purpose funds would support this.
• We must address underinvestment in infrastructure and public goods. Budget 2025 should ensure adequate staffing in regulatory bodies, invest €220 million in care sectors, build affordable housing, and introduce a €200 million National Training Voucher scheme.
• We need to future-proof our business model, we need a renewed focus on productivity, growth, and innovation. Budget 2025 should allocate €300 million for education and training, improve qualification recognition for non-EEA nationals, maintain retirement relief for family businesses, and invest €50 million in research and innovation, as well as €160 million in cybersecurity and digital capabilities.