Measures from new Cost of Business payments to increases in energy, e-commerce and innovation grants revealed.
The Irish Government has agreed a new range of measures that aim to reduce costs for small and medium-sized businesses.
The range of measures announced by the Minister for Enterprise, Trade and Employment Peter Burke, TD, includes a new round of the Increased Cost of Business Scheme (ICOB) with grants up to €5,000 for businesses, which will be open for another 14 days from today (15 May).
“Our small businesses are the backbone of our local economy and provide much valued employment in communities across the country”
It includes a second payment of ICOB for businesses in the retail and hospitality sectors.
The package of supports will see a doubling of the Innovation Grant Scheme to €10,000.
It also increases the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reduces the business contribution rate from 50% down to 25%.
Eligibility for the Trading Online Voucher is to be widened to include all sectors up to 50 employees, modernise eligible expenditure and will double the grant to €5,000.
The measures also increase the lending limit for Microfinance Ireland loans from €25,000 to €50,000.
A new ‘Ireland’s Best Entrepreneur Programme’ will be launched to encourage entrepreneurship and start-ups in under-represented groups.
A new National Enterprise Hub will be created for SMEs to access information on a wide range of Irish Government business supports.
The plans also aim to review ESRI research on the impact of Statutory Sick Leave before deciding on any further increases as well as a review of the proposed Roadmap for Increasing Minimum Annual Remuneration Thresholds for Employment Permits.
PRSI thresholds, training and outdoor dining
Minister for Social Protection Heather Humphreys has confirmed that she will increase the employer PRSI threshold from €441 to €496 with effect from 1 October 2024. This will ensure that employers with employees earning the weekly equivalent of the national minimum wage will pay the lower rate of employer PRSI rate of 8.8%.
The Minister for Further and Higher Education, Research, Innovation and Science Patrick O’Donovan will develop proposals for the effective and sustainable use of the €1.5bn surplus in the National Training Fund to future proof workforce skills in SMEs and ensure workers in SMEs can readily access lifelong learning opportunities.
The Minister for Housing, Heritage and Local Government Darragh O’Brien, TD, will shortly issue a circular letter to local authorities informing them that no fees shall be charged or levied for tables and chairs for the purpose of outdoor dining up to 31 December 2024. This is expected to save €125 per table for hotels, restaurants, public houses or other establishments where food is sold for consumption on the premises.
“Our small businesses are the backbone of our local economy and provide much valued employment in communities across the country,” Minister Burke said.
“These measures represent agreement from across Government on the need to support our SMEs in the face of rising costs – while also balancing critical progress in terms of working conditions.
“Small and Medium sized businesses are vital to Ireland’s success and are central to our ability to build a broad-based and successful economy and wider society. It has been a priority of Taoiseach Simon Harris to support our small businesses since he took office, and I am glad today that we have delivered on this.
“While there has been some moderation in the rate of wholesale price inflation, and measures to date have helped many vulnerable but viable firms, these new measures will help SME long-term financial sustainability, and aid them to grow and thrive so as to sustain good jobs into the future.
“I continue to advocate on behalf of small businesses and traders up and down this country, and I look forward to Budget 2025 to highlight further government commitment to this critical sector,” Minister Burke added.
The interventions will be welcomed by businesses across the country, Chambers Ireland’s chief executive, Ian Talbot.
Chambers Ireland have been calling for the Government to address rising costs and the increased regulatory burden of new employment legislation that has been phased in over recent months and years.
“Protecting and promoting small and medium indigenous businesses is crucial, as they form the backbone of the Irish economy, offering employment, delivering essential products and services, and representing the heart of communities right across the country. They have faced many challenges over the past number of years, including the impacts of Brexit, Covid and inflation. For businesses that have overcome these hurdles, we need to ensure their growth and prosperity into the future. Our network has consistently called for meaningful implementation of the ‘SME test’ and the renewed emphasis on this must be delivered in practice.
“The double payment of the Increased Cost of Business grant for businesses in the retail and hospitality sectors is particularly welcome as these sectors have been hardest hit by rising costs and squeezed by tightening margins. The proposal to review the employer PRSI threshold is also a positive initiative. A variety of increased or adapted grant schemes is also welcome and will assist companies in their digital and green transitions.
“Overall, we commend the Government for hearing the concerns of businesses and taking action. We look forward to further measures to support the competitiveness of our businesses in Budget 2025,” Talbot added.
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