Pictures: Kilkenny Chamber and PwC Kilkenny host post-Budget 2026 lunch

Kilkenny Chamber and PwC Kilkenny hosted their Budget 2026 Lunch on Wednesday at 12.30pm in Hotel Kilkenny.

Speaking at the event, Róisin Purcell, Tax Director, PwC Kilkenny, said: “For Kilkenny, the commitment to the reduced VAT rate for hospitality from July 1, 2026 is a real positive for our local economy and is to be welcomed.

“While households may not directly benefit from the Budget due to no changes in income tax bands, rates or credits, the hope would be that sustaining the wider economy in terms of encouraging housing development, enhancements to the R&D regime (in particular for smaller businesses) and tweaking the tax legislation to support multinationals will combine to maintain Ireland as a competitive location for foreign direct investment, attractive for the tourist industry and a sustainable place to start and operate a private business.”

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Addressing the audience, John Hurley, CEO Kilkenny Chamber of Commerce, said: “Budget 2026 offers welcome commitments on infrastructure and housing but leaves some questions unanswered for the business community.

“We welcome the investment proposals and the clear acknowledgement that housing and infrastructure delivery needs to be addressed. These are long-standing priorities for our members. Translating these commitments into real progress on the ground will be essential. There are several measures that have the potential to unlock stalled projects and breathe new life into our urban centres. It is positive that the Living Cities Initiative is extended. We also welcome the emphasis on high-density housing developments and the new measures to incentivise appropriate development such as the Derelict Property Tax.”
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Mr Hurley said that it was a Budget of two halves, warning that most businesses won’t experience any direct benefit from measures in Budget 2026.

"Instead, they are dependent on the trickle-down impact of critical infrastructure delivery," he said. "Their future competitiveness is also increasingly reliant on a growing number of ‘Action Plans’ but these must be converted into delivery mechanisms. In addition, the minor change to the taxation of Exchange Traded Funds (ETFs) will do nothing to divert the €160+ billion sitting in low-yield deposits into more productive, tax generating investment.”

“With our strong economy and resulting tax returns we have a unique opportunity to substantially change the tax system to encourage risk-taking, rather than making incremental changes to existing rules.” John Hurley said. “But that opportunity is slipping away. We will never have as good an opportunity to make bold reforms that support entrepreneurship and innovation.”

Also speaking, Jim Power, Economist, Author & Lecturer at Smurfit Business School and joint broadcaster of The Other Hand podcast, said: “Budget 2026 promised to be one of the more interesting budgets in some time. On the one hand the economy is doing well and the public finances look healthy. However, on the other hand concentration risk and the over-reliance on US multi-national investment highlights the vulnerability of the economy and the public finances due to the unpredictable policies of President Trump.

"This is a real concern both nationally and locally. While the South-East has a reasonably strong FDI presence, SMEs are an incredibly important driver of the regional economy, particularly tourism-related businesses such as activities, attractions, hospitality and retail. In the context of these sectors which are dominated by SMEs, the Government's approach to the 9% VAT rate for the tourism and hospitality sector has garnered considerable interest. Overlaying all of this is the pressure on household spending power due to the legacy effects of elevated inflation - the average cost of living today is almost 24 per cent higher than five years ago, with spiralling food prices now the key focus but it is unclear if the Government addressed this. Going forward, the South-East region needs more Government investment and support and that is what local stakeholders should be focused on.”