Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank Deputy Shanahan for posing this important question. The Government has adopted a proactive approach in supporting the Irish SME sector across multiple crises over recent years. Over the two-year period to budget 2024, a total of €12 billion was provided in cost-of-living and doing business supports, comprising a mix of permanent and one-off measures, most significantly the temporary emergency support scheme.

Budget 2024 also continued several measures which will support businesses, like the €257 million in support announced through the increased cost of business grant; the 9% VAT reduction for gas and electricity which was extended for an additional 12 months until 31 October 2024; the temporary excise rate reduction applying to auto diesel, petrol and marked gas oil which was extended until 31 March 2024; and an increase in VAT registration thresholds for the SME sector.

I recognise that costs are impacting firms and this motivated the recent introduction of a range of additional measures aimed at reducing costs for small and medium-sized businesses. These include ensuring the employer PRSI threshold is explicitly considered as part of the Low Pay Commission deliberations and is reviewed on each occasion that the minimum wage is increased; increasing the employer PRSI threshold from €441 to €496 with effect from 1 October 2024; reopening the increased cost of business scheme for another 14 days and launching a second phase of the scheme targeted at businesses in the retail and hospitality sector; doubling the innovation grant voucher from €5,000 to €10,000; increasing the maximum amount available under the energy efficiency grant scheme to €10,000 and reducing the business contribution rate from 50% to 25%; widening the eligibility for the trading online voucher and doubling the grant to €5,000; increasing the lending limit for Microfinance Ireland loans to €50,000 from €25,000; widening the eligibility for the digital for business consultancy scheme; launching a new Ireland’s best entrepreneur programme to encourage entrepreneurship; and launching a new online national enterprise hub for SMEs to access information on the wide range of Government supports.

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