diff --git a/.github/workflows/lint-and-tests.yml b/.github/workflows/lint-and-tests.yml
index 23f71fdc..4e30ff86 100644
--- a/.github/workflows/lint-and-tests.yml
+++ b/.github/workflows/lint-and-tests.yml
@@ -56,11 +56,6 @@ jobs:
         python-version: [3.7, 3.8, 3.9, "3.10", "3.11", "3.12"]
         dependencies: [normal]
         database: [sqlite]
-        # Installation breaks with python 3.12, see https://github.com/spiral-project/ihatemoney/issues/1297
-        exclude:
-          - python-version: "3.12"
-            dependencies: normal
-            database: sqlite
         # Test other databases with only a few versions of Python (Debian bullseye has 3.9, bookworm has 3.11)
         include:
           - python-version: 3.9
diff --git a/pyproject.toml b/pyproject.toml
index bf2de70b..cc6199a0 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -88,7 +88,13 @@ ihatemoney = "ihatemoney.manage:cli"
 [tool.hatch.build.hooks.custom]
 dependencies = [
     # Babel is needed to compile translations catalogs at package build time
-    "Babel>=2.13.1"
+    "Babel>=2.13.1",
+
+    # Babel 2.14 does not directly depend on setuptools
+    # https://github.com/python-babel/babel/blob/40e60a1f6cf178d9f57fcc14f157ea1b2ab77361/CHANGES.rst?plain=1#L22-L24
+    # and neither python 3.12 due to PEP 632
+    # https://peps.python.org/pep-0632/
+    "setuptools; python_version>='3.12'",
 ]
 
 [tool.hatch.build]