Call for Govt to tackle cost of doing business in Budget
The Small Firms Association (SFA) has called on the Government to introduce measures in the Budget to tackle the cost of doing business such as high labour costs.
The SFA has also renewed its call to for the introduction of a temporary PRSI rebate when Budget 2026 is announced next month.
The measure is among the proposals put forward by the small business representative group in its pre-budget submission, which is being launched today.
The document sets out a range of measures aimed at “reducing costs, lowering taxes, easing regulation and fostering recruitment to small businesses.”
A recent SFA survey showed that business costs remain a challenge for many small businesses.
The Small Business Survey found that among the businesses that have experienced increased costs in the past 12 months, the average increase was 11.7%.
More than 350 small businesses were surveyed as part of research, conducted by Amárach.
It concluded that labour-related costs continue to be the biggest challenge with almost a third (31%) of all businesses reporting that employment costs increased over the previous year.
However, the SFA said the figure is a decline from 48% of all businesses in a similar survey carried out last year.
The other measures sought by the SFA include improved access to finance, supports to help small business owners in digitisation to help to improve competitiveness and efficiencies.
The group also wants a reduction of the general Capital Gains Tax (CGT) rate from 33% to 20%, and an increase to the Small Benefit Exemption up to a value of €2,000 annually.
SFA calls for cut to VAT rate for hospitality
The SFA also added its voice to the calls for a cut to the VAT rate for the hospitality sector, “particularly related on the provision of foods and non-alcoholic drinks.”
The Director of the SFA said small business owners “need the tax system to give some relief without significant cost to the exchequer.”
David Broderick said: “Punitive taxes and burdensome regulations are putting a financial and time-consuming strain on entrepreneurs who are the lifeblood of many communities.”
“High business costs remain a critical issue, so the time for the Government to live up to its commitments in the Programme for Government has arrived.”
He said a temporary PRSI rebate for businesses that employ up to 50 people “must be included in Budget 2026 to give small business owners a chance to remain viable.”
“The SFA was encouraged by the Programme for Government commitments to small business owners and the subsequent establishment of the Cost of Business Advisory Group,” Mr Broderick added.
“However, high business costs remain a challenge as outlined in the SFA’s recent Small Business Survey which is why Budget 2026 must include measures to tackle high business costs through a more creative tax system as outlined in the SFA’s budget recommendations.”
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