Dublin businesses call for urgent action in next Budget

Press Association

There must be immediate, comprehensive funding for the Dublin City Taskforce findings, according to a pre-Budget submission.

Dublin Town, the collective voice of businesses in the City centre, said its members cannot wait any longer for the “urgent” action required to restore confidence in the area.

A special purpose vehicle, yet to be put in place, was promised to deliver on the report’s recommendations, which include 1,000 more gardai, the revitalisation of O’Connell Street, regeneration of social housing and the conversion of derelict sites.

“Trade in Dublin City centre continues to struggle.

“Measures to improve confidence in Dublin City centre are urgent,” said Dublin Town chief executive Richard Guiney.

The group said almost half of all taxes, including almost 60 per cent of VAT, is derived from the capital and says Ireland’s economic success depends on a functioning Dublin City centre.

It states that footfall is in line with that of 2024.

However, it remains approximately 15 per cent behind 2019, with global economic uncertainty a factor.

Dublin Town said the “serious cost advantage” of online retailers would be rebalanced by a US-style online sales tax of 1-2 per cent of transaction values.

“Most US states set a 100,000 US dollar threshold before the online business becomes liable.

“A similar amount would take many smaller family-owned Irish retailers out of such a tax.

“Click and collect sales should be exempt,” Mr Guiney said.

“Shipping small purchases over large distances, utilising plastic packaging, is not environmentally sustainable.”

Dublin Town has called for a revamp of local government with alternatives to rates and laments the loss of investment opportunities due to “extraordinary” delays in the planning process.

In a wide-ranging pre-Budget submission, it says the Budget surplus should be spent on infrastructure and calls for VAT rates of 20 per cent and 9 per cent with no VAT on hospitality service charges, but an increase in carbon taxes to help make up any exchequer shortfall.

It seeks state support to allow residential living space above commercial premises to be utilised in an effort to address the housing crisis, as well as for the conversion of former office space to residential use.

More than 4,000 homes and commercial properties are vacant across Dublin City centre, according to figures supplied by An Post’s data company GeoDirectory earlier this year.

According to CBRE, Dublin had an office vacancy rate of 17 per cent at the end of the second quarter of 2025.

“‘Living over the shop’ should be prioritised.

“A sensible approach to fire and disability access as applies in other EU states would help unlock the potential for productive use of upper floors of commercial premises in many Irish towns,” added Mr Guiney.

“While a change of use from office to residential use appears logical, the costs of conversion exceed potential rents.”