Letterkenny Chamber has responded to Budget 2026, describing it as lacking in ambition and offers no acknowledgement of the value of SMEs to the economy.
Speaking today, Chief Executive of Letterkenny Chamber Toni Forrester said that Budget 2026 offers some commitments on infrastructure and housing but offers little or no benefits to businesses.
“We welcome the investment proposals and the clear acknowledgement that housing and infrastructure delivery needs to be addressed. These are long-standing priorities for our members however these commitments must be translated into real progress on the ground with speed and efficiency.”
She continued, “The extension of the Living Cities Initiative to Letterkenny is positive, we have asked for this and glad to see it delivered. Measures like this and the derelict property tax have the potential to breathe new life into our urban centre. In addition, the introduction of the 9% VAT rate will be welcomed by many, but the cost pressure on businesses is still eroding their competitiveness.”
“This budget did not deliver any direct benefit to most businesses who are once again facing more financial burden as they deal with the increase in minimum wage and face into the implementation of auto enrolment. Instead, businesses are dependent on the trickle-down impact of critical infrastructure delivery. Their future competitiveness is also increasingly reliant on a growing number of ‘Action Plans’ as mentioned by the Minister, these must be converted into delivery mechanisms”.
“For Donegal we must see the infrastructure spending commitments turn into reality. The government has given increased budget commitments for water infrastructure, grid improvement and security of supply. This must turn into action for Donegal; this is the time to finally address decades of infrastructure deficit”.
“With our strong national economy and resulting tax returns we have a unique opportunity to substantially change the business environment and to deliver for businesses and working people. That opportunity has been missed”.
In spite of the challenges that our members face, our business community will continue to demonstrate resilience and a commitment to the development of Donegal.
-ENDS-
Some of Letterkenny Chamber’s key budget recommendations included:
Key Priorities Identified in the Submission
- Infrastructure Investment: Progress long-promised projects including the Ten-T Road scheme, County wide grid upgrades, and essential water and wastewater systems.
- Housing: Accelerate delivery of social and affordable housing, tackle the defective blocks crisis and enable building where homes are most needed.
- Cross-Border Worker Taxation: Resolve tax residency issues that create barriers for cross-border workers and employers seeking talent.
- Business Supports & Competitiveness: Maintain targeted supports, simplify taxation, and provide incentives for innovation and sustainability.
For more information:
Contact Toni Forrester at toni@letterkennychamber.com
