Kilkenny TD backs IBEC’s call for strong focus on business in upcoming Budget

Fianna Fáil TD for Carlow/Kilkenny John McGuinness has pledged to bring the urgent needs of businesses and the South-East region directly to Government following his attendance at IBEC's pre-Budget 2026 submission at the SETU campus in Waterford on Friday.

The event outlined the key asks from Ireland's largest business and employers' organisation, framing the upcoming budget against a backdrop of global economic volatility, US tax reforms, and persistent trade tensions.

Deputy McGuinness, having listened to the submission, said that the Government must respond with a budget that is both responsive to the current need to reduce the cost of doing business in Ireland and ensuring Ireland remains competitive in trade with world markets to secure long-term prosperity.
CLICK HERE TO READ MORE KILKENNY BUSINESS NEWS

“The message from IBEC is clear: complacency is not an option. The South East is a great place with huge potential, but to realise that potential we need a Budget that actively supports business, tackles rising costs, and delivers on critical infrastructure,” said Deputy McGuinness.

Key themes from the IBEC submission, which Deputy McGuinness endorsed, include:

Balanced Public Finances: Reducing over-reliance on volatile corporate tax receipts;
Predictable Capital Investment: Maintaining a strong pipeline for public investment, including multi-annual funding for major projects;

Enhanced R&D and Skills: Supporting innovation by improving the R&D tax credit and creating a sustainable model for apprenticeships and higher education;

Targeted Sectoral Support: Implementing measures, including potential PRSI changes and energy cost subventions, for sectors most impacted by tariffs and rising costs.

Echoing IBEC’s concerns, Deputy McGuinness highlighted specific challenges facing the region.

“We need to be mindful of the increased costs of exports and the negativity of tariffs,” he said.

“While we are the seventh most competitive economy in the world, that position is under pressure from soaring energy costs, which have increased substantially since 2021, and the ever increasing high cost of water infrastructure.”

He strongly advocated for the accelerated delivery of housing and infrastructure.

“Housing needs to be accelerated and made accessible, otherwise the economy will suffer,” he said.

“We need infrastructure like water and energy, and we need it now. I support IBEC's call to reduce VAT to 5% for the construction sector to stimulate construction.”

A significant focus of Deputy McGuinness's address was on education, innovation, R&D, AI, cutting red tape, and reducing the burden of regulation and bureaucracy imposed by Government. He called for a radical improvement in funding for lifelong learning and apprenticeships which is ‘essential for the ongoing development of our economy’.

He questioned the efficiency of the €1.5 billion National Training Fund: “Are employers involved in decision-making? Is the drawdown too complicated? We need to ensure resources for up-skilling are delivered without delay to provide qualified people for inward investment.”

He also emphasised the critical role of SETU and the life sciences sector.

“With Al, we need to manage the technology and harness its economic power for the region and in university learning. Life Sciences must be a priority. To achieve this, we must support R&D and innovation, foster collaboration with universities abroad, especially in Asia and urgently secure a Professor grade for SETU to attract and retain top talent.”