Editorial: Budget fails to address inflation debacle harming workers and families - Kilkenny Live

Budget 2026 has unfortunately fallen short and failed to meaningfully tackle the cost of living crisis that is damaging countless lives across the country.

Rather than help the squeezed middle and beleaguered workers, the Government caved to a lobby campaign by the hospitality industry to lower the VAT rate.

To be clear — there are many hospitality businesses that require assistance, including small and independent restaurants and pubs, locally-owned shops. But that does not mean a blanket reduction that benefits large multi-nationals, fast food chains and huge hotel conglomerates that continue to hike prices and pass no reductions on to the customer. A better measure would be to address the challenges of energy costs and staff shortages.
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As Siptu note, while business owners are receiving VAT and corporation tax cuts, workers’ wages will receive no protection from this inflation debacle. We are in the midst of a cost-of-living crisis and there is little in this Budget that does anything to alleviate it.

Tax bands remain the same. People are being left with less disposable income and spending power than ever due to the extraordinary inflation and the cost of rent/housing.

Since 2021 the cost of electricity has jumped 69%, while gas has more than doubled (+102%). Several suppliers also recently announced price increases. And yet, there are no one-off energy credits. As a result, many workers will receive no real wage increase from Budget 2026, and are potentially worse-off.
READ: MIXED REACTION TO BUDGET 2026

There is a welcome decision to reduce VAT from 13.5% to 9% on apartments. Kilkenny has one of the lowest percentages of apartments as housing stock in the country, and this needs to change quickly to address housing need.

Doctors’ and teachers’ representative groups, disability groups, and those representing older people have also criticised the Budget for not going far enough to support their industries or cohort and plan for the future. For many families, worrying times lie ahead, with no end in sight.