While Ireland’s Budget 2025 has been well received for its ambitious investment in infrastructure and skills development, industry leaders are sounding a note of caution. Although the €3bn allocated to infrastructure marks a positive commitment, the overwhelming sentiment is that without clear timelines and more firm action, Ireland risks falling short of its long-term goals.

Hubert Fitzpatrick, Director General of the Construction Industry Federation (CIF), welcomed the capital investment but emphasised the importance of delivery. “The scale of investment needed to support the growing population cannot be underestimated. While we welcome the €3 billion in capital investment, it must be underpinned by clear timelines and a commitment to delivery. Capital budgets need to be spent,” he said. Fitzpatrick also called for resourcing procurement agencies with skilled staff to ensure the projects progress at the necessary pace.

CIF also expressed frustration over the Residential Zoned Land Tax (RZLT) and its impact on homebuilders. “The three per cent tax on the market value of land will become a delivery cost, not an activation measure,” Fitzpatrick remarked, criticising the omission of builders from tax exemptions despite the delays they face due to planning issues.

Turner & Townsend shared similar concerns about the challenges that lie ahead in turning the budget’s ambition into reality. Philip Matthews, Managing Director for Ireland, said, “This investment demands planning reform, improved project governance, and control to ensure value for money for Ireland.” He welcomed the €3 billion infrastructure spend but added that it will require robust planning systems and governance to ensure delivery is not delayed.

John Robinson, Infrastructure Lead at Turner & Townsend, pointed out that the bold plans in Budget 2025 lack the financial muscle to truly deliver transformative change. “The vision is there, but the funding gap risks turning transformative projects into missed opportunities,” he said.

The ACEI has welcomed the ‘infrastructure budget’ saying, “Unsurprisingly, the government has followed the logic of investing its surplus and additional windfalls from apple and AIB in infrastructure. Many of the ACEI budget submission recommendations are evident in today’s measures as they focussed on significantly increasing investment in housing, water, transport and energy infrastructure. We will continue to advise, inform and influence government policy in how to deliver the housing, infrastructure and climate action measures in a sustainable manner. Our goal is to help increase the effectiveness and reduce the carbon footprint in the delivery of public and private sector project delivery.”

Engineering Industries Ireland (EII) welcomed the government’s ambition, particularly the review of the R&D Tax Credit scheme. Ed Byrne, Chair of EII, applauded the infrastructure investments, saying, “The €750 million for electricity grid infrastructure is vital as Ireland strives to meet its climate targets.”

Overall, while Budget 2025 sets a strong foundation, industry leaders agree that a more strategic approach, with clearer timelines and funding commitments, is essential to realise Ireland’s long-term ambitions.

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