WEALTH August 17, 2026 0 Comments

Why Azets’ €5bn Indigenous Business Fund and Wage Freeze Proposal Could Reshape the Entire Economy — Are You Ready?

Ever wonder what it takes to turn Ireland’s homegrown businesses into global powerhouses? Azets Ireland just threw down a serious gauntlet — proposing a staggering €5 billion fund aimed squarely at scaling indigenous companies internationally. It’s not just another line item in a budget request; it’s a clarion call to harness excess corporation tax receipts into a strategic Home Grown Investment Fund focused on small to mid-sized businesses. Think about it — channeling that kind of firepower into AI skilling, innovation acceleration, and easing tax burdens could flip the entire economic script. But here’s the kicker: amid rising fuel prices and escalating operational costs, how do we ensure Irish SMEs not only survive but thrive on the world stage? Azets isn’t just dreaming; they’re laying down a roadmap that demands we rethink how we invest in the backbone of the Irish economy — the very firms employing two-thirds of the workforce. It’s bold, it’s brilliant, and it might just be the shift we need to build tomorrow’s opportunities instead of just patching today’s problems. LEARN MORE

Azets Ireland has proposed the creation of a €5bn fund to support indigenous businesses scaling internationally in its pre-Budget submission.

The professional services group has suggested the government allot excess corporation tax receipts to a Home Grown Investment Fund for strategic investments in small to mid-sized businesses.

The company believes the proposed fund would help rebalance the domestic economy and support more firms to expand their operations globally.

Additionally, Azets is calling for €350m in funding to be ringfenced from the National Training Fund for AI skilling and training for SMEs to enable them to upskill staff and enhance future competitiveness.

The submission also sets out a number of measures aimed at encouraging investment in and accelerating innovation among Irish SMEs.

They include introducing a roadmap to reducing Capital Gains Tax to 20% by 2030, in line with standard rates across Europe.

The firm is also calling for a simplified route for mid-sized firms to avail of the R&D Tax Credit to encourage smaller firms to engage with the credit and “empower the next generation of indigenous innovation leaders”.

Amid the escalating cost of doing business, the firm is calling for deferring planned increases in employer PRSI rates to 2027 and a cap on future contribution rates for SMEs.

Azets is also calling for freezing the minimum wage rate until 2030 and additional statutory entitlements for employees to help small and family-owned businesses grappling with rising labour costs.

The company also wants government to postpone any planned increases in excise duty until energy markets have stabilised.

“Ireland’s indigenous businesses have demonstrated extraordinary resilience navigating an energy crisis, escalating labour costs, and the seismic disruption of shifting global trade patterns in recent years. Recent increases in fuel costs serve as another reminder of the pressures facing many SMEs across the country,” said Neil Hughes, CEO of Azets Ireland.

Other proposed measures include the introduction of a mandatory SME Impact Assessment for new tax measures and the creation of a statutory SME public procurement target requiring a minimum 30% of the value of government contracts for indigenous Irish businesses.

Azets Ireland has called for excess corporation tax receipts to be put into a Home Grown Investment Fund for SMEs.

“While businesses need support to address immediate cost pressures, Budget 2027 must also focus on the longer-term measures that will enable indigenous firms to invest, innovate and grow.

“Too often, the conversation centres solely on managing today’s pressures rather than building tomorrow’s opportunities,” said Hughes.

“Indigenous businesses are the backbone of the Irish economy and employ two in every three workers. Yet for too long, the scale of their contribution has not been matched by the strategic focus needed to help them invest, grow, and compete.”

Photo: Neil Hughes. (Pic: File)