Ibec has strongly supported the government’s Budget strategy, saying that “the underlying strength of the Irish business model and its capacity to generate record tax revenue has put government in a position whereby it can afford to deliver the correct scale of Budget amid a challenging inflationary environment”.

But the organisation added that “if the economic environment continues to deteriorate over the winter, a more significantly expansionary fiscal stance may be needed to robustly protect households and businesses”.

Chief executive Danny McCoy said: “Ibec has been calling on government to address the energy crisis and commended today’s Budget announcement of targeted use of measures to deliver supports for those most exposed to the spiralling energy costs.

“It is imperative that the supports announced today now work towards having a material impact in offsetting spiralling energy costs. Such supports must work for all sectors of the economy, including experience economy, retail, manufacturing, and SMEs.

“Business is disappointed to see no extension to the 9% rate of VAT and limited new measures to offset this loss. Ongoing support will be needed in the experience economy to protect viability.

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“It is welcome, though, to see several measures that, if effectively implemented, can make Ireland a better place to live and work.

“The increase in the entry point to the top rate of tax is a sensible measure that will help workers struggling with cost-of-living challenges. In addition, today’s announcement of reduced childcare fees will be welcomed by those families finding it increasingly difficult to find affordable childcare services to meet theirs and their children’s needs.”