Budget 2027: What this means for businesses?

The 2027 Budget was signalled in advance as “a Budget for workers”. However, most audiences will also recognise it as a business-friendly Budget. Tánaiste Simon Harris described it as one that “balances today’s needs with tomorrow’s musts”.

For businesses, today’s measures offer some relief from cost pressures and modest incentives to invest, but they stop short of a sweeping package of enterprise support. A higher minimum wage may add to payroll costs. However, the proposed cut to capital gains tax and a new tax-free investment option should encourage investment. The delay to restoring fuel excise may also offer some short-term relief.

The bigger question for Irish businesses is whether these measures will strengthen the conditions for growth and investment over the longer term.

Below, we examine what the Budget could mean for key sectors, including energy, transport & infrastructure, technology, health, finance, and sustainability.

Energy

The carbon tax on home heating oil and natural gas will be reduced for the remainder of this Government’s term. The move responds to rising heating costs, which are placing a heavy burden on many families; some of whom have few practical alternatives. The decrease amounts to a reduction to €48.50 per tonne, from €63.50 per tonne.

Though announced last week, a package of measures has been announced as part of the Budgetary process which includes; a €2,000 boiler scrappage grant; a €600 domestic battery grant; expanded PV eligibility; a temporary increase in the non- domestic microgeneration grant to 45% of eligible costs and an increased grant support for business heat pumps and solar thermal systems to 45%.

A total package of €650 million for energy upgrade schemes will be provided through the Sustainable Energy Authority of Ireland.

Fuel excise cuts have now been extended to June 2027, from the prior extension to February 2027. These excise cuts continue to discount diesel by 32c per litre and 27c per litre of petrol.

Transport & infrastructure

Transport was highlighted as a key focus for investment, particularly in light of fuel protests earlier this year. The Government has announced an extension to the Road Transport Support Scheme for two months this year. The measure is designed to alleviate pressure faced by road haulage and commercial passenger transport operators, and address frustrations within the sector.

Specific to public transport, €4.2 billion will be provided, through the National Development Plan, for projects including DART+, BusConnects, and Cork commuter rail projects, as well as road projects. Meanwhile, reaffirming the Government’s commitment to progressing the delivery of MetroLink, €6 billion is being allocated to the project’s development between 2027 and 2030. While Minister Chamber noted the many benefits MetroLink will bring, including enabling up to 120,000 more homes to be built, timely delivery is key to delivering these gains.

Health

The Department of Health is to receive over €29 billion in total funding in 2027, its highest ever allocation. This includes €27.4 billion in current spending, an increase of €1.6 billion on 2026, alongside a further €1.7 billion in capital funding.

Announcing the allocation, Minister for Public Expenditure Jack Chambers noted that annual health budgets have increased by €13 billion over the past decade, while the workforce has grown by 30 per cent. The Minister also stressed that increased investment must translate into improved productivity, meaningful reform, and better outcomes for patients.

His remarks come amid continued scrutiny of health service spending, following the Government’s recent decision to remove day-to-day spending autonomy from several HSE regions, bringing regional expenditure under greater central control.

For businesses operating in the health sector, this signals a continued focus on demonstrating value for money. This is particularly applicable to companies engaging with the HSE on procurement, service delivery, and the adoption of new medicines and technologies.

Tech

Budget 2027 reinforces Ireland's focus on skills, innovation and technology-led growth. The Government is to invest €5.3 billion in the Department of Further and Higher Education, Research, Innovation and Science in 2027. This includes a new €360 million three-year National Training Fund Skills Package aimed at developing AI and digital capabilities across the workforce. It also announced further enhancements to the R&D Tax Credit, including increased subcontracting limits to third-level institutions and third parties.

For businesses, these measures are designed to strengthen Ireland's attractiveness as a location for technology investment and innovation.

Finance

The Ireland Strategic Investment Fund (ISIF) is launching a €1 billion investment programme to help create the next generation of large Irish companies. The Tánaiste described it as ISIF’s “biggest ever investment in scaling”. Its aim is to help Irish businesses remain rooted in Ireland while scaling up and expanding internationally. The programme will run for three years, up to 2030.

The proposed personal investment account scheme has driven considerable media conversation over the past six months, with diverging views apparent on how best to roll out the scheme. While more detail is to follow, the picture is now a little clearer. Under the new personal investment account scheme, individuals will be able to contribute up to €12,000 a year. Funds of up to €50,000 will be tax-free; amounts above that threshold will be subject to an annual tax of one per cent, irrespective of whether the investment makes a profit. The accounts are due to become available from 1 July next year.

Sustainability

€1.3 billion will be invested in the Department of Climate, Energy and the Environment; of which €170 million will be allocated to climate action, and €155 million to develop the circular economy. While these allocations are welcome, industry, in particular SMEs, will want to see them translate into practical support to meet growing sustainability obligations. This is particularly applicable to the Packaging and Packaging Waste Regulation (PPWR).

Fenton Fitzwilliam is a public affairs and strategic communications consultancy built for organisations operating in critical and highly regulated industries. In these complex environments, simply being heard isn’t enough. You need the people who matter to understand your business, your ambitions, and the decisions you need them to make.

If you’d like to discuss what Budget 2027 means for your organisation, get in touch with our team.