RGDATA Specifies Budgetary Requests in Budget Submission

RGDATA called for Government to deliver a reduction in Employers PRSI; 9% VAT on food served up in shops, cafes and restaurants and a freeze on all regulatory and Government costs imposed on SME businesses in its Budget Submission for 2026.

RGDATA conduced a Business Costs Survey of members to determine their outlook, priorities and sentiment in present trading conditions. A summary Report on the Survey, which was conducted between April and May 2025, found that retailers are facing an extremely challenging trading environment with across the board increases in operating costs at a time when consumers are increasingly price sensitive and tending to shop around due to an enhanced competitive dynamic. The key findings of the Survey are;

• Wages, energy, and food supplier costs are the top three pressures.
• Consumer behaviour is shifting toward more frugal and selective purchasing.
• Businesses are struggling to maintain margins, with some questioning long-term

RGDATA has several specific budgetary requests for Budget

2026, including Support to manage Employment costs – the single biggest pressure that convenience retailers are facing is around the increased levels of employment costs, directly related to State sanctioned increases in the National Minimum Wage, Statutory Sick Pay and additional leave including an additional Public Holiday. These increases have directly added to the bottom line of retailers, either due to increases in the actual minimum wage or due to proportionate increases that have worked through to wage levels. Independent food/convenience shops and supermarkets are labour intensive and there is a minimum number of staff that is required to operate a convenience shop effectively.

‘To provide meaningful and direct assistance to employers struggling with high employment costs, RGDATA requested that Budget 2026 should see a reduction in the relevant rates of Employers PRSI from 8.9% to 6% and from 11.15% to 9% respectively and the introduction of a new rate of 6% for employees registered as students in educational establishments in the State.

RGDATA also called for the Government to address State imposed fixed energy levy’s – as modern retail grocery outlets are energy intensive through heat, light, refrigeration, ovens and display cabinets.

‘Budget 2026 should herald the start of a new more progressive way of funding both renewables and grid investment by identifying new more direct funding mechanisms recognising that the provision of infrastructure and the growth of renewable energy are both societal costs whose funding should not be disproportionately paid by SME business customers.’

In its submission, RGDATA stated that it supports restoring the VAT rate for catering services to 9% which would make a significant difference to convenience retailers with instore and food to go offerings (deli sales, in-store cafes and sales of hot beverages).

RGDATA believes that Budget 2026 should see a formal statement from the Government confirming that it is Government Policy for the following 12 months to support employment and competitiveness in the domestic economy, by deferring any additional State based measures which could increase business costs over that period.

Government should explore if there are any measures that could be introduced in Budget 2026 which could assist with the reduction of Insurance costs, particularly on Employers Liability and Public Liability cover.

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