Budget 2020 provides support for business in uncertain period

Ibec, the group that represents Irish business, has welcomed the package of supports announced in today’s Budget to help business deal with the uncertainty of Brexit.

It noted the Government’s commitment to increase investment spending and introduce new supports for businesses faced with a no-deal Brexit. 

Ibec CEO Danny McCoy said: “The context of a rapidly growing domestic economy set against the backdrop of Brexit, and international trade tensions, has made Budget 2020 one of the most difficult to formulate in some time. The Government has in our view struck the right balance by focusing available resources on those measures which can help insulate the economy from external shocks by investing in critical infrastructure, preparing for Brexit, and improving supports for SMEs.

“A further €900 million in spending on public infrastructure in 2020 will see a cumulative €5 billion increase in annual public capital spending over the last five years. This shows that the Government has been listening to the concerns of business when it comes to core quality of life issues which are impacting on our ability to attract and retain talent. More must be done, however, when it comes to the funding of higher education which has not seen the level of ambition needed in new core funding.

“Today’s announcement of further supports for business preparing for Brexit is a welcomed development. Ibec has set out over the past number of years the need for comprehensive and meaningful supports for the companies, workers, and communities which will be the most impacted by Brexit. We look forward to working with the Government over the coming months to make sure that these supports are designed and rolled-out to help the country and Irish business prepare for Brexit.

“A package of additional tax supports for SMEs through improvements to schemes such as the EIIS and the KEEP scheme for share options, while containing some very welcome elements, is limited in scale. On the other hand, changes to the R&D tax credit will have a more significant impact on SME take-up. Over the coming weeks many businesses will be watching closely to see if the Finance Bill delivers on today’s announcements with workable legislation.”