Cork Views: City growth a key aim for next budget

Ahead of the Dáil summer recess, Cork Business Association (CBA) submitted a comprehensive set of proposals for Budget 2026 to support the business community. While there has been positive momentum in recent months, key challenges must be addressed in Budget 2026 to protect the vibrancy and sustainability of Cork City’s business community.

Kent Station has never looked better, and projects like Cork Luas and the long-awaited M28 motorway to Ringaskiddy are also gathering momentum, thanks in part to continued advocacy from the business community.

However, despite this momentum, more work is needed to address underlying challenges. Bold decisions are needed now.

We are calling on the Government to take positive action on housing, to increase garda numbers in the city centre, to alleviate the increasing cost of doing business to save further closures, and to prioritise investment in key transport infrastructure.

Among the CBA’s most urgent concerns is the soaring cost of doing business - especially for the hospitality and SME sectors, which remain under strain. In light of continued closures, the CBA has called on the Government to follow through on its commitment to reduce VAT for food-related services.

On the topic of minimum wage increases, the CBA supports the principle of a living wage but warns that without State supports, SMEs will be disproportionately burdened. It urges the Government to introduce mechanisms to protect these businesses while continuing wage reform.

It also recommends clarity and legislative change around Benefit-in-Kind (BIK) on staff entertainment, which currently disadvantages smaller businesses compared to multi-nationals.

Businesses are struggling to meet the increasing costs of energy, and we are asking the Government to conduct a full review into market charges associated with energy bills, including the Imperfection charges, the Supplier Capacity charges, TUOS Service charges, Capacity charges and the DUOS Day/Night charges.

Insurance costs also remain a major concern, with the CBA urging the Government to improve market competition and underwriting capacity.

Furthermore, the CBA is advocating for improvements to tax relief schemes that support business ownership and succession. This includes adjustments to Entrepreneur Relief - such as increasing the €1 million lifetime limit to a ‘per project’ basis - and clearer Revenue guidance on valuations in succession planning.

Other suggestions include reducing Capital Gains Tax from 33% to 20% to align with EU averages, and refinements to the Employment and Investment Incentive Scheme (EIIS) to better support early-stage companies and mitigate investor risk

The housing crisis is the No.1 priority in the CBA’s recommendations. Despite various Government interventions, significant gaps remain in housing delivery, especially in Cork city. There needs to be a move away from a piecemeal, politically driven approach toward a long-term, evidence-based housing strategy.

The CBA outlines a number of targeted proposals, including: Expanding the Living City Initiative by relaxing eligibility criteria (e.g., extending building date limits and removing income caps); introducing a new Apartment Living Initiative to incentivise the construction of modern apartment blocks; adjusting tax treatment to make refurbishment and redevelopment projects more financially viable; and enhancing the Help to Buy scheme to include renovations of vacant or derelict properties.

The CBA also identifies technical changes to the EIIS and rental income taxation that could stimulate private investment in housing, particularly in urban areas.

On the Croí Cónaithe Cities scheme, which aims to bridge the viability gap in apartment construction, the CBA notes the grant model is well-intentioned, but the timing of payments presents financing difficulties for many developers.

We are encouraging the Government to explore more flexible mechanisms, particularly for small and mid-sized developers.

If the Government fails to act decisively now, re-election will be a tough ask.

The CBA applauds support and funding for initiatives it has developed in the past year to make Cork the safest, cleanest city - such as a wide street by street tidy up and the introduction of a Community Safety Wardens pilot. These initiatives are helping to make Cork a more attractive and welcoming place for businesses, residents and visitors alike. However, the city needs a significant rise in gardaí numbers. The submission also calls for a review of the court system to explore alternatives to having guards on duty being held up in court all day.

Throughout the submission, the CBA underlines its commitment to partnership with local and national Government to ensure Cork city continues to develop as a vibrant, livable, and economically resilient city - one growing at a faster rate that any other in the country.

We’re proud of what has been achieved over the past year through collaboration, but Budget 2026 presents an opportunity to take practical steps that will support small businesses, increase housing supply, and enhance public safety. These changes will help ensure Cork’s momentum is maintained.

The time for incremental adjustments has passed. What we need now is bold, transformative policy intervention.

As Cork city continues to grow, the message from its business leaders is clear: support us now - or risk stalling the momentum we’ve worked so hard to build.