Barry Heneghan (Dublin Bay North, Independent)
Link to this: Individually | In context

69. To ask the Minister for Enterprise, Trade and Employment the measures his Department is taking to support small and medium-sized enterprises facing rising energy and business costs, particularly in the hospitality and tourism sectors; and if he will make a statement on the matter. [62164/25]

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

The Government recognises that the cost of doing business has been an issue for firms in recent years, arising from both the wider inflationary trends – particularly energy costs – as well as Government mandated changes in the form of improvements to working conditions across a range of areas. It is important to note that costs for firms, as measured through the CSO’s Wholesale Price Index, are declining, and are down 2.6% in the 12 months to September 2025.

Most recently the Government has taken action to address business costs through the publication of the Action Plan on Competitiveness and Productivity, and the convening of the Cost of Business Advisory Forum, which are both commitments in the Programme for Government. The focus of the Action Plan is on actions that can be taken to strengthen Ireland’s competitiveness and productivity. The Action Plan contains a number of actions in the area of sustainability and energy and these include a review of electricity network tariffs, and a review of supports and funding available to businesses for climate adaptation measures.

The establishment of the Cost of Business Advisory Forum delivers on the commitment regarding supports for Small Business, Enterprise and Industries. The Forum is tripartite collaboration bringing together a broad section representative bodies spanning many indigenous sectors as well as the multinational corporations. The second meeting of the Forum took place in July with a specific focus on Energy Costs and discussions from this meeting will inform the Forum’s report to Government which is scheduled for Q1 2026.

Budget 2026 has also provided an overall package of €9.4bn. €8.1bn has been provided for public spending and €1.3bn for new tax measures. Measures which will benefit SME’s include:

• A reduction in the Hospitality VAT rate from 13.5% to 9% from 1 July 2025.
• An increase in the rate of the R&D Tax Credit from 30% to 35%, inclusion of R&D employee emoluments, and increase in the first-year payment threshold from €75,000 to €87,500.
• An increase in the CGT Revised Entrepreneur Relief lifetime limit from €1m to €1.5m
• An increase in the Employer PRSI threshold to ensure that employers do not pay the higher rate of PRSI for full-time workers earning the minimum wage.
• Extension of the KEEP scheme to 31st of December 2028.