Ruairí Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

74. To ask the Minister for Enterprise, Trade and Employment the supports being provided to support small and medium enterprises to deal with the increased cost of business; and if he will make a statement on the matter. [43544/24]

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am acutely aware and recognise the challenges facing SMEs right across the country. They are crucial to our towns and villages. That is why the Government has brought forward a substantial range of measures to reduce costs and enhance support for small businesses.

Earlier this year, I announced a second payment of grants under the Increased Cost of Business Scheme (ICOB), for businesses in the hospitality and retail sectors. In total, ICOB has successfully paid out over €244 million to 75,000 SMEs, including a double payment over 38,000 SMEs in the retail and hospitality sectors right around the country.

As part of Budget 2025, I announced an allocation of €170 million to the Power Up Grant which builds on the success of the Increased Cost of Business Scheme. This grant is for businesses in the hospitality, retail sectors who received a second payment of the ICOB grant. These businesses are now in line to receive a €4,000 Power Up Grant once they continue to meet the eligibility requirements.

Under Power Up, it is intended that businesses in the hospitality, retail sectors who became rateable in 2024 may be eligible. Officials in my Department are currently working on final details and implementation of the new scheme.

I also announced changes to the Local Enterprise Office Energy Efficiency Grant . The Energy Efficient Grant supports capital investment by businesses to reduce carbon emissions based on energy efficiency projects. The scheme supports companies to reduce their carbon emissions and overall energy costs by accelerating the adoption of low carbon technologies or processes identified through a Green for Business, Green Start or SEAI Energy Audit. The grant now offers 75% of project costs, up to a maximum of €10,000. Applications are open since 12 July.

The LEO Digital for Business consultancy assists businesses in understanding digitalisation and its benefits, and developing a digital roadmap for the business, contributing to the overall target of basic digital intensity for small businesses. Digital for business is free with no cost to the applicant.

On 4 September the Grow Digital Voucher was launched. Under this new offer, the funding available has been increased to up to €5,000 and the eligibility criteria expanded to cover a wider range of digital interventions available to a broader range of businesses compared to the Trading Online Voucher.

I launched the National Enterprise Hub on 10 July 2024, it is a new all-of-government service, funded through my Department and operated by Enterprise Ireland. It is staffed by expertly trained advisors and is focused on helping businesses access a range of government supports.

More broadly, there were a number of enterprise tax measures announced in Budget 2025 which will be of relevance to businesses operating in the sector. These include:

• Changes to the CGT Retirement Relief to support intergenerational transfers;
• Raising the VAT registration threshold to €85,000 for goods and €42,500 for services;
• Enhancements to the Small Company Start Up Relief;
• Increasing the Small Benefit Exemption Limit to €1,500, and the number of benefits allowable from 2 to 5 annually; and
• A €125 increase in the Earned Income Tax Credit.