Simon Coveney (Cork South Central, Fine Gael)
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This Government has adopted a pro-active approach in supporting Irish businesses across multiple crises over the last number of years, including the introduction of unemployment supports during the COVID -19 pandemic, the provision of financial supports to firms facing the implications of Brexit, and more recently, through the period of increasing overhead costs. My Department is fully committed to serving the SME sector and the measures included in Budget 2024 reflect this.

It is understandable that businesses are concerned about the impact of rising costs, and this Government is continuing to monitor the situation regarding the costs of doing business. While significant support has been provided to enterprise throughout the period of rising costs, it is not possible to insulate every business from the total impact of these costs.

Over the two years prior to Budget 2024, a total of €12 billion was provided in cost of living and business supports, comprising a mix of permanent and one-off measures. The main programme introduced by Government to alleviate cost pressures for small businesses was the Temporary Business Energy Support Scheme (TBESS).

Budget 2024 also contained several measures to support businesses facing increased costs. Among these, was the Increased Cost of Business Grant, targeted at small and medium sized businesses who operate from a rateable premises. This scheme is intended to aid firms who have been most affected by increases in business costs. The total allocation for the ICOB grant is €257 million.

My Department is currently working with the Local Authorities on the administration of the grant, to ensure that support can be provided in early 2024. The grant will be available to up to 143,000 businesses operating from a rateable premises, or 95% of all commercially trading business premises nationwide.

An important consideration facing many firms relates to those tax debts warehoused during the COVID-19 pandemic. The Minister for Finance has announced that Government will make changes to the Tax Debt Warehousing scheme including a reduction in the interest rate applying to warehoused tax debt to 0%.

Over the last number of years this Government has also introduced or progressed several initiatives to improve working conditions in Ireland, including progress towards a living wage, an auto-enrolment retirement savings scheme, the right to request remote work, sick pay legislation and improvements to parent’s leave and parent’s benefit.

An assessment is currently being undertaken by my Department and the Department of Social Protection which will examine the cumulative impact of these measures on enterprise. This assessment has been informed by engagement between officials from my Department and both employer and employee representatives. This report is currently being finalised and will inform public policy in this area.