Budget 2025: How the industry reacted
Print1 October 2024
The Budget for 2025 has been unveiled this afternoon (1 October) by Finance Minister Jack Chambers and Minister for Public Expenditure & Reform Paschal Donohoe in Leinster House.
Following is how the industry responded…
Retail Ireland
Retail Ireland, the Ibec group that represents the retail sector, 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.
Arnold Dillon, director, Retail Ireland, 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.”
Food Drink Ireland
Food Drink Ireland (FDI), the Ibec group representing the food and drink sector, has welcomed the Government’s announcement in Budget 2025 to unlock €1.5 billion from the National Training Fund over the coming years.
Linda Stuart-Trainor, deputy director, said: “With almost 165,000 people employed in the agri-food sector, a skilled labour force is key to our ability to produce world-class food and drink products.
“Today, the Government has made an important commitment to unlocking the National Training Fund.
“We are eager to collaborate on the rollout through additional funding for apprenticeships, an Upskilling Incentive Scheme for SMEs and fostering a green talent pipeline, as the sector continues to invest in sustainable technologies and processes.”
Vape Business Ireland
Vape Business Ireland (VBI), the national trade association for vaping retailers, has welcomed the announcement of an excise on vapes by Minister of Finance, Jack Chambers, in Budget 2025.
VBI has long called for an excise on vapes in line with what we see with our European counterparts, and appropriate oversight over the market is vital as more and more people use vapes to quit smoking.
However, VBI has also warned that the Government’s plans to ban flavours and flavour descriptors would result in an increase in black market activity, which Minister Chambers said had been considered when fleshing out the details of the new tax over the weekend.
“As a responsible retailer, I agree with the measures announced by the Minister to improve the oversight and administration of vaping products,” said Paul Malone, spokesperson, Vape Business Ireland.
Read more: Budget 2025: Main measures that affect the Irish grocery retail industry
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