Budget 2027: A boost for households, but is it enough for business?

This was positioned as a personal tax Budget, and there will be some positive impact for people’s pockets in the changes to various thresholds. In the run up to Budget 2027 there was much less focus on the business aspect, but there were some welcome measures here that made this one of the most business-friendly Budgets we have seen in some time.

The capital gains tax reduction has been sought for many years, and is a very positive surprise that will have a material benefit for entrepreneurs selling businesses. We would also have liked to see progress in other areas like Entrepreneur’s Relief and Retirement Relief, but these have been left untouched. The plan for a broader review of enterprise taxation and grants is welcome but will be of little immediate comfort to struggling SMEs dealing with auto-enrolment, and energy costs. The dependence on corporation tax from a handful of multinationals is well known, and while the €1bn ISIF scaling fund for domestic businesses is very significant and a step in the right direction, the reality is it will be a long road to build up our indigenous business sector to a size that would be healthier for the economy.