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  3. Budget 2026 must end reliance on corporation tax 'sugar rush’

Budget 2026 must end reliance on corporation tax 'sugar rush’

June 16, 2025
Budget

Ireland's economic model is unsustainable and leaves the country dangerously exposed to global shocks, the Irish Congress of Trade Unions warned ahead of today’s National Economic Dialogue, as it called on Government to use Budget 2026 to put the economy on a firmer footing.

Congress, which represents over 800,000 workers across Ireland, is urging Ministers to end the over-dependence on corporation tax receipts and build a new economic model that can deliver good jobs, improved living standards, and sustained growth.

Speaking ahead of the National Economic Dialogue at Dublin Castle, General Secretary Owen Reidy said:

"In this era of uncertainty, Government needs to end its reliance on the sugar rush of corporation tax windfalls, and start serious planning for the longer term.

"We know that headline figures don't tell the full story of the Irish economy. We have an over-reliance on a handful of firms for corporation tax, significant wage inequality, and major infrastructure deficits across housing, healthcare and transport.

"Budget 2026 must mark a turning point by giving certainty and security to workers across Ireland. That means good jobs that pay well, a decent standard of living, as well as stronger public services. But it should also mean a shift in our economic model.

"In the coming weeks, the Irish Congress of Trade Unions will be setting out how we believe that can be achieved through a New Economic Model, and today at the National Economic Dialogue we will be bringing that message to Ministers."

He added: "We'll be urging Government to create genuine economic certainty by investing in infrastructure and research, strengthening workplace democracy, reducing inequality, and ending the fiscal gimmickry of the past."

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