Budget 2027 has delivered some welcome short-term relief for Ireland’s haulage, passenger transport and logistics operators, but significant questions remain over the sector’s longer-term competitiveness and the cost of decarisation, according to FTA Ireland.
The organisation has welcomed a number of measures announced in Budget 2027, including the temporary deferral of scheduled fuel-tax increases and the extension of the Road Transport Support Scheme (RTSS).
However, FTA Ireland has warned that commercial transport operators continue to face severe pressures from volatile fuel prices, increasing operating costs, working-capital constraints and the substantial investment required in new vehicles and supporting infrastructure.
Diesel tax increases delayed – not cancelled
One of the most immediate measures for hauliers is the temporary deferral of scheduled fuel-tax increases.
While this will provide some breathing space over the coming months, diesel excise is still due to be restored in stages during 2027.
That means the underlying fuel-cost problem facing road transport has not disappeared. For operators running large diesel fleets, even relatively small increases in the pump price can translate into substantial additional annual costs.
FTA Ireland has therefore described the Budget measures as welcome recognition of the pressures facing the sector, rather than a complete solution.
RTSS extension welcomed
The organisation has also welcomed the two-month extension of the Road Transport Support Scheme for eligible haulage and passenger transport operators.
The RTSS has become particularly important against the backdrop of elevated fuel costs and tight operating margins.
However, attention will now turn to the precise details of the extension, including eligibility, payment arrangements and the treatment of existing applications.
There is also the unresolved issue of outstanding RTSS applications, payments and appeals, an area on which FTA Ireland has been pressing Government for greater clarity.
More investment in roads and transport
FTA Ireland also welcomed increased investment in roads, public transport and electric vehicle purchase and charging schemes.
For the commercial transport sector, however, the challenge is ensuring that decarbonisation measures translate into practical options for operators.
Heavy commercial vehicles require significantly different charging infrastructure from passenger cars, while the capital cost of moving towards zero-emission trucks remains a major obstacle for many fleets.
This means Government support will increasingly have to address not simply vehicle purchase incentives, but depot charging, grid connections, public HGV charging infrastructure and other practical barriers to fleet transition.
FTA Ireland: Budget falls short of comprehensive approach
Commenting on Budget 2027, FTA Ireland CEO Niall Cotton said the measures reflected some of the concerns raised by the organisation ahead of the Budget.
“These measures provide some recognition of the pressures highlighted in our Pre-Budget Submission. However, the published Budget documents do not yet set out the more comprehensive approach sought by FTA Ireland.”
Cotton confirmed that FTA Ireland intends to continue its engagement with Government on the industry’s priorities.
“We will continue to engage constructively with Government on these priorities, alongside the timely and transparent resolution of outstanding RTSS applications.”
He added: “Supporting viable commercial transport while enabling practical decarbonisation is essential to keeping freight, people and supply chains moving.”
