Simon Coveney (Cork South Central, Fine Gael)
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The Government has provided significant support to business throughout the period of rising cost of doing business and has been proactive in limiting the fallout from higher rates of inflation in input costs and prices.

Prior to Budget 2024 a total of €12 billion – 4½ per cent of national income – was provided in direct relief to absorb some of the impact and ease the burden of inflation on households and businesses. The main programme introduced by Government to alleviate cost pressures for small business was the €1.3 billion Temporary Business Energy Support Scheme (TBESS). Budget 2024 contained a number of measures which will support businesses facing increased costs of doing business.

• The 9% VAT reduction for gas and electricity is being extended for an additional 12 months, until 31^stOctober 2024;
• The temporary excise rate reductions applying to auto diesel, petrol and marked gas oil which were due to expire on 31^stOctober 2023 are being extended until 31^stMarch 2024;
• An increase in the limit on the amount that an investor can claim relief on under the Employment and Investment Incentive Scheme, to €500,000;
• An increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods;
• Reduced Capital Gains Tax rate of 16% for Angel Investors in innovative SMEs, on gains of up to €3 million;
• An increase in the R&D tax credit from 25% to 30%, as well as increasing the first-year upfront payment from €25,000 to €50,000, which will be of particular benefit to SMEs;
• The commencement of a range of amendments to the Key Employee Engagement Programme for the attraction and retention of staff;

The Increased Cost of Business Grant (ICOB) was announced as part of Budget 2024 and will be targeted at Small and Medium sized businesses who operate from a rateable premises. Firms who do not have a rateable premises are not within the scope of this scheme. It is important to be clear that this scheme is a once-off grant aid provision and not a commercial rates waiver. It will have no bearing on the commercial rates paid by firms.

The grant is intended to aid firms but is not intended to directly compensate for all increases in wages, or other costs, for every business.

The grant is intended to be paid at a rate of up to half the enterprise’s commercial rates bill, subject to a prescribed limit. It is important to recognise that there were limited resources available to provide support to business through this scheme. The total allocation for this scheme is €250m, to be allocated across all qualifying firms. Therefore, any change to the parameters of the scheme, to include higher rate payers, would require a reduction in support for already qualifying firms.

The Government is committed to a fair wage for all workers and in November 2022, based on the recommendations of the Low Pay Commission, announced the introduction of a National Living Wage for employees which will be in place by 2026. The National Living Wage, along with other measures such as the introduction of statutory sick pay and pension auto-enrolment are positive changes to the workplace in Ireland.

In line with recommendation from the National Competitiveness and Productivity Council in its report Ireland’s Competitiveness Challenge 2022 there is currently an assessment being undertaken by the Department of Enterprise, Trade and Employment and the Department of Social Protection which will examine the cumulative impact of measures including Pension Auto-Enrolment, Parent’s Leave and Benefit, Statutory Sick Pay, Additional Public Holiday, Living Wage, Remote Working. The report is due for publication later in Q4 2023 and will inform public policy in this area.