Azets calls for €5bn SME Growth Fund and major AI skills investment in Budget 2027.
Professional services firm Azets Ireland has called on the Government to consider introducing a €5 billion investment fund to help indigenous businesses scale internationally and allocate €350 million for AI skills training in its Budget 2027 submission.
The professional services firm, which supports mid-market, entrepreneurial, owner-managed and family-owned businesses, has outlined a package of measures aimed at strengthening SME competitiveness, encouraging investment and easing the growing cost pressures facing businesses.
“With the right supports in place, indigenous businesses can drive the next phase of Irish economic growth, creating jobs, strengthening communities and building a more resilient economy for the future”
The submission comes as many firms continue to contend with economic uncertainty, rising fuel costs and labour market challenges.
At the centre of Azets’ proposals is the creation of a new “Home Grown Investment Fund” that would allocate €5 billion of excess corporation tax receipts from multinational companies to support indigenous businesses seeking international growth opportunities.
According to the firm, SMEs remain a vital part of the Irish economy, employing two out of every three workers in local communities across the country.
AI upskilling needed across Irish economy
Azets is also urging Government to ringfence €350 million from the National Training Fund to support AI skilling and training initiatives for small and medium-sized enterprises. The firm said access to skilled talent remains a major challenge as businesses seek to adopt AI technologies and improve competitiveness.
The pre-Budget submission includes a range of measures designed to stimulate investment and innovation. These include the introduction of a roadmap to reduce Capital Gains Tax to 20% by 2030 and simplifying access to the R&D Tax Credit for mid-sized businesses.
To address rising operating costs, Azets is calling for planned increases in employer PRSI rates to be deferred until 2027 and for future contribution rates for SMEs to be capped. The firm is also seeking a freeze on the minimum wage until 2030 and the postponement of any planned increases in excise duty until energy markets become more stable.
Additional recommendations include introducing mandatory SME Impact Assessments for new tax measures and business-related policies, alongside the establishment of a statutory public procurement target that would allocate at least 30% of the value of government contracts to indigenous Irish businesses.
Commenting on the submission, Neil Hughes, CEO of Azets Ireland, said businesses continue to face significant pressures.
“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.”
Focus on long-term growth
Hughes said Budget 2027 should look beyond immediate challenges and focus on creating conditions that support long-term growth.
“Too often, the conversation centres solely on managing today’s pressures rather than building tomorrow’s opportunities”
“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.”
He added that indigenous businesses should play a central role in future economic development.
“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.”
Highlighting the firm’s investment proposals, Hughes said: “Our Pre-Budget Submission calls for a shift in focus from short-term crisis management to long-term strategic investment in ambitious indigenous businesses, enabling them to become key drivers of the next phase of Irish economic growth. Reducing Capital Gains Tax to 20% while simplifying access to the R&D Tax Credit would help unlock access to much needed capital that can support these businesses accelerate innovation and growth.”
He also reiterated the case for a dedicated investment vehicle.
“Budget 2027 presents an opportunity to put indigenous enterprise at the heart of Ireland’s economic future. A new €5 billion Home Grown Investment Fund would help ambitious Irish businesses scale internationally, creating a stronger and more balanced economy in the process.”
On AI adoption, Hughes said SMEs would require additional support to develop future-ready capabilities.
“If SMEs are to fully harness the potential of AI, they need greater support to develop the right skills for the future. Ringfencing €350 million for AI training and introducing a dedicated SME grant would help businesses build these crucial capabilities and directly enhance future competitiveness.
“At Azets Ireland, we see the ambition that drives owner-managed, family-owned, and mid-sized businesses across the country every day,” Hughes concluded. Budget 2027 is an opportunity to unlock this potential.
“With the right supports in place, indigenous businesses can drive the next phase of Irish economic growth, creating jobs, strengthening communities and building a more resilient economy for the future.”
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