Takeaways from the publication of the Summer Economic Statement and the revised National Development Plan

It was a busy week in Government Buildings with the publication of both the Summer Economic Statement and the revised National Development Plan. 

5 key takeaways from our team

1. The overall package of tax reductions and public spending increases for Budget 2026 will amount to €9.4 billion, an increase of 7.3 percent on the revised 2025 General Expenditure Ceiling, with the total tax package amounting to €1.5 billion. At a time of great uncertainty at a global level with the prospect of increased US tariffs looming over the Irish economy, and the deterioration of the short-term outlook in Ireland, careful planning will be crucial to ensure any corresponding economic slowdown is managed.

    

2. Infrastructure was the only show in town this week. Data from the Irish Fiscal Advisory Council has identified a 25 percent infrastructural gap between Ireland and its peer countries. This week’s commitment to an additional €34 billion in additional capital spending for the remainder of the decade is critical if Ireland is to narrow this substantial gap.  

    

3. The infrastructure challenge is a cross-government one, so the solutions must be too. The National Development Plan outlines the importance of proper governance and appraisal of capital expenditure in ensuring public funds are deployed efficiently and impactfully. The establishment of the Accelerating Infrastructure Taskforce should streamline the various government agencies responsible for implementing the Government’s ambitions. This is the critical success factor for Ireland – delivery of an infrastructure fit for an advanced economy with global ambitions. Key to this will be delivery of an appropriate return on investment for the government’s key stakeholder – its taxpayers.

    

4. Housing is only one part of the puzzle.1 in 4 SMEs surveyed by Chartered Accountants Ireland in April reported that their business has lost employees or seen prospective employees unable to take a role due to the unavailability of affordable housing. So, it is encouraging to see such significant emphasis on addressing this persistent challenge over the next five years. That said, the critical levers to ensuring Ireland’s competitiveness also include energy and water, so these significant deficits in the State’s infrastructure need to be addressed holistically if Ireland is to fully realise its ambition of becoming a place where businesses can thrive.

    

5. Among the most frequent barriers encountered by Chartered Accountants Ireland’s 40,000 members is access to childcare, and we have lobbied extensively on this issue. Despite being featured as a key commitment in the Programme for Government, the revised National Development Plan lacks detail on how more childcare places will be created for working parents. Greater priority must be given to an issue that so fundamentally affects the labour market.