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Irish Times

VAT rate for small businesses will be reduced permanently, Tánaiste tells party colleagues

The next Budget will be an 'expansionary package' with plans to permanently reduce the VAT rate for small businesses, the Tánaiste has said. Simon Harris told the Fine Gael parliamentary party meeting on Wednesday that Budget 2026 would be 'responsible and responsive', according to a source present. The Tánaiste is understood to have told those present that he and his party colleagues remembered 'very well' what the party canvassed on in the lead up to the general election. Among the measures discussed was a permanent reduction in the VAT rate for small businesses. READ MORE This was alongside remarks by Mr Harris that childcare fees for many families are 'like a second mortgage'. He told colleagues these costs must be 'permanently reduced' over the lifetime of the Government. He added that the cost of education, across all levels, must be reduced alongside healthcare costs, while 'significant progress' must be made in children's disability services and special education. Separately, the Fine Gael leader said he supported calls for post offices to receive €15 million per year in funding for the next five years. A report earlier this year from Grant Thornton found that the post office network requires this level of funding per year until 2030, without which the State faces the prospect of 'rapid, unrestrained closures', which would risk 'irreparable financial, economic and social harm'. Direct funding of €10 million annually from the State is due to expire at the end of this year. An Oireachtas committee on Wednesday heard that up to 400 post offices could close if the State does not increase aid.