Retail Ireland has set out the sector's key priorities in advance of Budget 2026, following a recent pre-budget meeting with Minister for Finance Paschal Donohoe TD and Minister for Public Expenditure and Infrastructure Jack Chambers TD. The meeting gave the sector a direct opportunity to put the concerns of retailers before government in advance of Budget Day in early October.
Discussions centred on rising cost pressures, the vital need for investment in skills and careers, concerns over retail crime, the importance of revitalising towns and cities, and how the sector can support Ireland's green transition. These themes form the backbone of Retail Ireland's formal Budget 2026 submission.
Rising employment and business costs
As Ireland's largest private-sector employer - with over 300,000 people across the country - retail faces some its most challenging times yet. A combination of labour market reforms, including the shift toward a living wage, statutory sick pay, pensions auto-enrolment, and new leave entitlements, are estimately to raise employment costs by up to 37% in the coming years. Retail Ireland cautions that such an escalation is untenable for many SMEs and labour-intensive retailers.
The submission called for targeted measures to help relieve the burden: a PRSI rebate for employers of low-wage workers, tying the PRSI threshold to the minimum wage, preserving sub-minimum rates as an employment pathway for young workers, and more flexibility under the Small Benefit Exemption. Crucially, any future increase in the minimum wage should reflect the unique pressures on retail.
Investing in retail skills
As digitalisation and evolving customer expectations reshape the retail landscape, roles across the sector are growing more complex. Retail Ireland stressed that with proper government support, retail can continue to offer strong career pathways. The submission proposed a National Training Fund voucher scheme to assist SMEs, higher employer apprenticeship grants to offset training costs, and expanded investment in Skillnet Business Networks to ensure accessible, tailored training across the sector.
Tackling retail crime
Retailers report rising incidents of theft, verbal abuse, and antisocial behaviour, all of which undermine staff safety and customer confidence, making retail less appealing as a place to work or shop. Retail Ireland called for the swift publication and adequate resourcing of the Retail Crime Strategy, due by end - 2025. The sector also asked for a Garda-retailer information-sharing platform, crime-prevention grants for SMEs, and robust legal protections for retail workers, especially increased penalties for assault. While improvements have occurred in Dublin city centre, the message was clear: much more needs to be done countrywide.
Supporting urban centres
Healthy retail depends on thriving towns and cities. Yet some urban areas have yet to fully recover, and many still face issues including low footfall, safety concerns, dereliction, and declining public environments. Retail Ireland highlighted the Dublin City Centre Taskforce's recommendations as a model for recovery and urged the same approach to be applied to other towns and cities around the country. Embedding these measures into Budget 2026 and the National Development Plan would help restore confidence, attract footfall, and support the long-term sustainability of retail nationwide.
Accelerating the green transition
Retail continues to lead in sustainability, with investments in energy efficiency, waste reduction, and circular economy efforts. Yet rising energy costs, compliance burdens, and limited capital remain barriers, especially for smaller businesses. Retail Ireland's submission called for incentives to adopt low-carbon fuels such as HVO in transport fleets, expanded grants for solar, store refurbishments, and circular initiatives, improved SME access to the EXEED scheme, and more practical sustainability tools to help measure and report emissions.
Looking ahead
Budget Day, scheduled for October 7, 2025, will be a critical moment for Ireland's retail sector. The priorities highlighted in Retail Ireland's submission reflect both immediate challenges and long-term ambitions. Rising costs, skills shortages, retail crime, urban recovery, and climate action are all central to the sector's future.
Over the coming weeks, Retail Ireland will continue to advocate these priorities with Government, ensuring that the contributions and needs of retail - our communities' economic backbone - are fully recognised and supported in Budget 2026.
