Public finances, income tax base and the wider domestic economy exposed
Dublin, 17th August 2026: ISME, the Irish SME Association, has called on Government to use Budget 2027 to make a clear, measurable shift in favour of indigenous enterprise, warning that Ireland’s economic resilience cannot continue to depend on a narrow corporate tax base or on enterprise policy that gives insufficient weight to locally owned businesses.
Following the earlier publication of its Pre-Budget Submission 2027, ISME says the next phase must move from broad agreement to practical delivery. It is urging Government and policymakers to focus on a limited number of Budget measures that can be clearly defined, delivered and assessed, rather than allowing the needs of indigenous business to be lost in wider fiscal debate.
ISME says Budget 2027 should prioritise measures that help Irish SMEs to scale, invest, train and compete. Its core priorities include a tax system that encourages scale-up, ready and affordable access to capital, restored investment in skills and training, stronger support for lifelong learning and vocational education, and an enterprise policy that supports a competitive indigenous business base across the economy.
Neil McDonnell, Chief Executive of ISME, said: “There is now broad recognition, across the range of social partners, that Ireland needs a stronger indigenous enterprise base. The question for Budget 2027 is whether that recognition is turned into action. We cannot afford another Budget where local business is acknowledged in principle but left without the practical measures needed to scale, invest and compete. The Government should choose a small number of clear, deliverable reforms and pursue them with urgency. Indigenous enterprise is not a sectional interest; it is central to balanced growth, regional employment and long-term economic resilience.”
ISME’s Pre-Budget Submission warns that 297 companies, representing 0.1% of companies, accounted for 84% of total corporation tax receipts in 2025. Exchequer revenue sources are more concentrated today than they were before the great financial crash. ISME says this concentration leaves the public finances, the income tax base and the wider domestic economy exposed. This underlines the need for a stronger home-grown enterprise sector.
The submission also highlights Ireland’s weak entrepreneurial participation among 20–29-year-olds and points to reduced SME credit in sectors such as construction, retail, hospitality and community services. ISME says improving access to capital and strengthening the skills base are practical steps that would help convert Ireland’s economic success into broader, more durable domestic enterprise growth.
ISME is now encouraging decision-makers, business representatives and independent commentators to validate and support a focused Budget 2027 agenda for indigenous enterprise. The organisation says success should be measured not by the volume of proposals advanced, but by whether a manageable number of important reforms are secured and implemented.
ISME’s full Pre-Budget Submission 2027 is available at https://isme.ie/wp-content/uploads/2026/06/ISME-Pre-Budget-Submission-2027.pdf
