Budget 2022 / What business needs to know
Today marks a return to a more normal budget day by reducing the deficit as we step out of the Covid crisis to sustainable levels, increasing investment in key areas in line with the National Development Plan and dealing with the day-to-day challenges facing the country within a tight overall envelope.
- The extension of the wage subsidies through the EWSS, a package of income tax band indexation, targeted measures to reduce the cost of childcare, subsidisation of public transport for younger worker will help dampen rising cost pressures.
- The additional €100 million in funding for the Experience Economy to encourage a sustainable recovery will also help to re-open parts of this sector which are still struggling.
- A €1.1 billion Brexit Adjustment Reserve fund contains a number of measures to help support companies dealing with ongoing Brexit uncertainties innovate and diversify.
Budget 2022, Ibec Analysis
Ibec priorities for Budget 2022
Our priority, post-COVID, must be on ensuring future growth is sustained and sustainable. With a renewed focus on homegrown business and competitiveness, we can ensure resources are available to meet the major economic and social challenges we face.
The backdrop to Budget 2022
With Irish goods exports increasing over the past year, despite turmoil both globally and closer to home, there is much to be optimistic about on the future of the Irish economy. However, there are still major challenges on the horizon that need to be recognised and addressed.
Returning to a focus on competitiveness and encouraging indigenous business
The withdrawal of support for the sectors worst affected by the pandemic and Brexit will need to be balanced with investment in digitalisation and innovation to boost economic competitiveness, as well as the introduction of offsetting measures to cover the increased cost of trade.
Preparing our business model for change
Protecting the foreign direct investment vital to our growth will require innovative responses to any challenges to our tax competitiveness. These solutions will arise from investment in infrastructure, technology, education and innovation.
Building back better
As we work to meet the many challenges facing our economy, we cannot lose sight of our commitment to upskilling our labour market, reducing our carbon emissions, increasing the supply of affordable housing, and making our pensions more sustainable.
Read the full submission.
Budget 2022 Ibec Submission