“A Whopper of a Budget but the only worker to benefit is Ronald McDonald”
Commenting on Budget 2026, Irish Congress of Trade Unions General Secretary Owen Reidy said:
"The reality is that Budget 2026 will hurt workers. It shortchanges minimum wage workers by €600 while it tells ordinary workers to hand around €250 in subsidies to profitable corporations like McDonald's. It does nothing to make the structural changes needed to secure our economic future.”
VAT Cut
“Whatever claims to fiscal responsibility this Government may have had have been left in tatters after a €700m corporate handout to the low-paying hospitality sector.
“Delaying the introduction until July is fiscal gimmickry that fools no one. This is a major corporate tax handout based entirely on anecdotal special pleading and a lack of evidence, and it will cost every taxpayer in this country €250 a year. The hospitality sector has done very well in recent years and workers struggling with the cost of living shouldn’t be forced to give it a dig out.
“The cut in VAT is a blunt, expensive, and unnecessary change, and the only worker who benefits is Ronald McDonald.
“Similarly, the latest slew of tax breaks for construction will prove ineffective at generating supply and will simply increase profits for developers. A more holistic approach is needed including punitive measures to discourage land hoarding and measures to encourage workers into construction.”
Fiscally irresponsible
“Successive governments have now been warned about the need to reduce the reliance on corporate tax windfalls, but time and again, these warnings go unheeded.
“It is neither credible nor responsible to continue relying on these windfalls at the same time as narrowing the tax base. The Government should have taken a longer-term view, acknowledging that without the corporate tax windfall, the public finances would be billions in deficit. The current approach is short-sighted and unwise.”
“Last July, the trade union movement launched its New Economic Model, setting out how Ireland can create a productive economy that supports workers, while ensuring that the public finances remain sustainable. We will continue to press the government to adopt these measures.”
Minimum wage
“If Government hadn’t reneged on its commitment to over 200,000 of the country’s lowest paid workers to reach 60% of the median wage from January, the minimum wage would be increasing by 95 cents to €14.45 instead of just 65 cents. Adding on another three-year wait for a living wage, leaves minimum wage workers up to €600 out of pocket next year alone.
“It beggars belief that minimum wage workers are being short-changed by up to €600 by Government at a time when the labour market and general economic environment have never been stronger. Unions aren’t alone in this view. The Low Pay Commission is unanimous in recommending Government keep their decision to delay the living wage until 2029 under constant review.”
A positive - Investment in infrastructure
“Despite the many shortcomings elsewhere in the Budget, we welcome the increased investment in infrastructure. Congress agrees with the analysis that Ireland is suffering from significant infrastructure deficits across a swathe of areas including the energy grid, the water grid, housing and transport. All of this is having a hugely detrimental impact on workers. It is therefore encouraging to see a €2bn additional capital allocation.
However, increased budgets are not enough by themselves. We have a significant shortage of workers in construction and without better terms and conditions in the sector and a drive to increase apprenticeships and work permits we will not succeed in unlocking extra housing and better infrastructure.”
