Retailers 'disheartened' by Budget and minimum wage hike
Irish retailers have expressed strong opposition to the government's Budget 2027, specifically citing a 5.6% increase in the minimum wage as a threat to business viability. While some tax analysts welcomed the reduction in capital gains tax, industry leaders warn of potential insolvencies and job losses.
Why it matters
The tension between rising labor costs and business sustainability highlights the economic challenges facing the retail sector in Ireland.
Irish businesses continue to process the impact of budget measures at the annual KPMG Budget Breakfast at the Mansion House in Dublin.
The event brought together more than 400 business leaders.
Retailers described this budget as a "significant blow" to the sector by increasing the minimum wage by 5.6%.
"Our members across the country are completely disheartened by this budget at a time when the retail sector is really showing that it's under pressure," the CEO of Retail Excellence Ireland, Jean McCabe, told RTÉ's Morning Ireland.
She noted that over the last seven years the sector absorbed "on its own" a 48% increase in the minimum wage.
"Our ask has always been that Government shares some of that cost burden with us to make it more affordable to keep people employed," Ms McCabe added.
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