Budget 2027: Independent Local Food Shops Left to Foot the Bill for Rising Costs – RGDATA

• Government has added to business costs by increasing the National Minimum Wage
• No relief for other increasing operating costs including energy
• RGDATA calls for urgent reconvening of Cost of Business Forum

RGDATA has called for the Cost of Business Forum to be urgently reconvened after Budget 2027 added further employment costs while failing to meaningfully address other major operating costs facing independent local food shops.

RGDATA, which represents over 3,000 family-owned independent food/convenience shops across Ireland, has written to the Chair of the Forum asking that it be reconvened urgently to assess what has been achieved since its report was finalised.

RGDATA Director General Roseanne Regan said:

“For over a year, representatives of SMEs, including RGDATA, sat around the table as part of the Cost of Business Forum examining the rising costs facing businesses. The report of that Forum has effectively been ignored, with only one administrative change being made to Enhanced Reporting Requirements.

“We have written to the Chair today calling for the Forum to be urgently reconvened to assess what has actually been delivered, what remains outstanding and what now needs to be done.”

Regan said the Budget Statement was the first formal indication employers received that the National Minimum Wage would increase by an amount far in excess of inflation.

“Thousands of independent shop owners around the country will be deeply disappointed by Budget 2027. The highest business cost increase they have been dealing with – the cost of employment – will go up again as a result of the increase in the National Minimum Wage by an amount in excess of inflation.

“The decision to raise the employer PRSI threshold from €552 to €600 per week is welcome, but in reality it will only cushion some of the considerable additional employment costs associated with the increase in the National Minimum Wage. A reduction in the employer PRSI contribution rate would have had a more meaningful and direct impact on employment costs.

“For an employer with a full-time employee working 39 hours on the minimum wage, the increase will add approximately €1,750 a year in wages and employer PRSI. Multiply that across a workforce and the impact is significant. Where does Government expect these businesses to find this extra money?”

RGDATA also criticised the absence of meaningful measures to address rising electricity costs, which are a significant overhead for independent grocery and convenience shops.

“Energy is one of the biggest costs of running a local shop. Refrigeration, lighting, ovens and other essential equipment have to run regardless of what happens to energy prices. Yet there is no meaningful relief in this Budget from the day-to-day electricity costs facing these businesses.

“Fewer than four in ten of the independent retailers we surveyed expect to make a profit this year. Government cannot continue to add to the costs of businesses operating on tight margins and simply expect them to find the money.

“On the evidence of Budget 2027, Government has not demonstrated any real intent to reduce the overall cost of doing business. On the contrary, independent local shops are being left to foot the bill for another year of rising costs.”