Budget 2026 Falls Short, Ignoring Workers Amid Inflation Crisis

Budget 2026 has been met with criticism for its failure to effectively address the ongoing cost of living crisis affecting families and workers across the nation. Instead of providing substantial relief, the Government’s decision to lower the VAT rate for the hospitality sector has drawn ire, as it appears to prioritize industry lobbying over the pressing needs of ordinary citizens.

While it is acknowledged that many small and independent hospitality businesses, such as local restaurants and pubs, require support, the blanket VAT reduction does not discriminate between larger multinational chains and smaller establishments. This approach raises concerns that significant corporations will benefit disproportionately, continuing to raise prices without passing savings on to consumers.

Concerns Over Inflation and Wage Stagnation

The Irish trade union, Siptu, has voiced strong opposition to the Budget’s measures, stating that while businesses are receiving reductions in VAT and corporation tax, there are no provisions to protect workers’ wages amidst the inflation crisis. With tax bands remaining unchanged, many individuals are left with diminishing disposable income and purchasing power due to escalating costs in essential areas such as housing and utilities.

Since 2021, electricity prices have surged by an astonishing 69%, while gas prices have more than doubled, increasing by 102%. Recent announcements from several suppliers regarding further price hikes have only compounded the challenges faced by households. Despite these circumstances, the Budget does not include one-off energy credits, leaving many workers without any real wage increases and potentially worse off than before.

Mixed Reactions to Housing Measures

One notable provision in the Budget is the reduction of VAT from 13.5% to 9% on apartments. However, this change may not significantly impact Kilkenny, which has one of the lowest proportions of apartments in the country. Stakeholders emphasize the urgency of increasing the availability of apartment housing to address the ongoing housing crisis.

Various advocacy groups, including those representing doctors, teachers, people with disabilities, and the elderly, have also expressed disappointment with the Budget. They argue that it falls short in adequately supporting their sectors and planning for future needs. As families brace for uncertain times, the lack of decisive action leaves many wondering about the path ahead.

In conclusion, Budget 2026 has failed to deliver a robust response to the inflation crisis affecting countless lives. With ongoing challenges in housing, energy costs, and wage stagnation, many workers and families are left with little relief in sight.