Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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172. To ask the Minister for Enterprise, Trade and Employment when the increased-cost-of-business grant scheme will be up and running; and if the upper limit of €20,000 rates paid could be extended. [49784/23]

Fergus O'Dowd (Louth, Fine Gael)
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173. To ask the Minister for Enterprise, Trade and Employment when he expects the details of the increased cost of business grant to be published; and if he will make a statement on the matter. [49838/23]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 172 and 173 together.

The Increased Cost of Business Grant (ICOB) was a measure announced as part of Budget 2024 for small and medium sized businesses who operate from a rateable premises. It is intended to be paid at a rate of up to half the enterprise’s commercial rates bill in 2023, subject to a prescribed limit. 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. It is also a grant – rather than a rates rebate or waiver – and firms should continue to pay their commercial rates as normal. It is also not intended to benefit multinational or larger firms.

In establishing the conditions for providing supports to business, it is also important to recognise that there were limited resources available to my Department to provide such supports. The total allocation for this scheme is €250 million. While it is acknowledged that many larger firms have been struggling with recent increases to various business costs, there was simply no scope to extend the ICOB to the larger cohort of business.

I and my officials are also conscious that many smaller rateable premises may have had greater difficulty negotiating the application process for previous schemes such as the TBESS. With the ICOB, however, it is envisaged that the administrative burden for firms claiming this relief will be minimal and this is one of the reasons we are targeting these firms in particular.

The technical details underpinning the ICOB scheme and the mechanism for delivering the payment are currently being developed. My officials will work together with officials from the Department of Housing, Local Government and Heritage will work together with the Local Authorities to finalise the details of the grant in the coming weeks. It is also not intended to benefit multinational or larger firm. The grant will be paid through local authorities and will be paid in the first quarter of next year.

I am conscious that there are a number of firms marginally above the threshold set out on Budget day. Nevertheless, the total allocation remains €250 million. Therefore it important to be clear that an extension of the scheme to higher ratepayers would mean a smaller grant payment for existing qualifying firms and this is something that has to be considered as the technical details are confirmed over the coming weeks.

Carol Nolan (Laois-Offaly, Independent)
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174. To ask the Minister for Enterprise, Trade and Employment if he is aware of recent media reports of heightened numbers of closures of restaurants, cafés and other food-led businesses across the country in recent months; to outline his plans to help hospitality businesses that are currently struggling with high costs and tight margins to stay open; and if he will make a statement on the matter. [49951/23]

Simon Coveney (Cork South Central, Fine Gael)
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It is understandable that businesses are concerned about the rising costs they are encountering at the moment. The impact of rising prices is not unique to Ireland, but an issue facing all major economies around the world as the effects of the pandemic unwind with the rapid resumption of economic activity, and more recently the geopolitical uncertainty following the invasion of Ukraine. Inflation in Ireland – although still elevated at 5.1 per cent in October – is generally declining and is down from 6.4% in the 12 months to September 2023. In its most recent quarterly bulletin, the Central Bank of Ireland have forecasted inflation to fall to 3.2 and 2.3% in 2024 and 2025, respectively.

The Government has provided significant support to business, including those in the hospitality sector, throughout this period of rising costs and has been proactive in limiting the fallout from higher rates of inflation in input costs and prices. It is, however, not possible to insulate all businesses from the full impact of rising costs.

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 also contained a number of additional 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 costs for every business.

In line with a 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.

The Government is continuing to monitor the situation, however no new measures are currently under consideration beyond what has already been announced.