Posted: October 2, 2024

Budget 2025 sets a new precedent in Ireland’s fiscal history, allocating nearly fifteen billion euro for total capital investment. This record-breaking expenditure marks the highest annual spend the country has ever seen, promising to significantly transform the construction and engineering sectors while bringing substantial changes for employees across these industries.

Key Points from Budget 2025

  • €3BN allocated for infrastructure capital projects in 2025, focusing on Road & Water
  • €1.25BN allocation to Land Development Agency
  • Future sale of AIB shares to be ring-fenced for infrastructural projects
  • Benefit-In-Kind for Electric Vehicles: €10,000 universal relief extended for 1 year (OMV)
  • R&D Tax Credit increased from €50,000 to €75,000
  • EIIS / Start-Up Relief:
    • Extended to 2026 (2 years)
    • EIIS investor relief increase from €500,000 to €1 million
    • Start-up relief increase from €700,000 to €980,000
  • EV threshold for company cars remains at €45,000
  • Stamp Duty changes:
    1. Bulk acquisition rate increased from 10% to 15%
    2. Residential property valued above €1.5 million: rate increased from 2% to 6% (immediate effect)
    3. Residential rates remain at 1% up to €1 million, 2% up to €1.5 million, then 6% above €1.5 million

Impact on Construction and Engineering Sectors

Boost in Infrastructure Projects

The €3BN allocation for infrastructure capital projects, particularly in road and water, signals a surge in large-scale construction and engineering opportunities. This investment, coupled with the €1.25BN for the Land Development Agency, is likely to create a sustained demand for skilled workers and specialized engineering services.

Sustainable Development Focus

The extension of the Benefit-In-Kind relief for electric vehicles and the maintained threshold for company car EVs demonstrate a continued push towards sustainable practices. This could drive innovation in green construction techniques and increase demand for eco-friendly engineering solutions.

Support for Innovation and Start-ups

The increase in R&D Tax Credit and the extension of EIIS/Start-Up Relief could stimulate growth in construction and engineering start-ups, potentially leading to new technologies and methodologies in the sector.

What It Means for Employees

Job Opportunities

The massive infrastructure investment is likely to create numerous job opportunities across various skill levels in construction and engineering. Employees may find increased demand for their expertise and potentially better compensation packages.

Skills Development

With the focus on large-scale projects and sustainable development, employees may need to upskill or reskill to meet new industry demands. This could lead to more training opportunities and career advancement prospects.

Electric Vehicle Incentives

The extension of EV benefits could make it more attractive for employees to opt for electric company cars, potentially leading to cost savings and aligning with broader sustainability goals.

Start-up Opportunities

The enhanced EIIS and Start-Up Relief measures could encourage entrepreneurship in the sector, opening up new career paths for employees considering starting their own businesses.

Budget 2025 represents a positive fiscal plan for Ireland’s construction and engineering sectors. With record-breaking capital investment and a clear focus on infrastructure and sustainability, it offers substantial opportunities for both companies and employees.

However, success will depend on the ability to adapt to new market conditions, invest in skills development, and embrace innovative practices.