Budget 2018 Cannot be Brexit-Proofed but Measures Needed to Mitigate Against Serious Challenges

We Must Act On Matters Within Our Control

Ahead of the National Economic Dialogue commencing tomorrow, Chambers Ireland today (27 June 2017) called for Budget 2018 to address the concerns of business through committing to significant additional investment in capital projects across the country.

 

Speaking at the launch of the Chambers Ireland Pre-Budget 2018 Submission, Ian Talbot Chief Executive of Chambers Ireland said, “The National Economic Dialogue is an important forum for stakeholders and Government to openly discuss Budget priorities. This year, Chambers Ireland will be strongly calling for increased levels of investment to ensure that Ireland can meet both the needs of a growing economy and population, as well as the challenges emerging from Brexit.

 

“The message received from businesses across our Chamber Network is loud and clear; Ireland must invest in infrastructure to meet the demands of a modern economy, to enable business to grow and thrive and to improve the quality of life for our citizens. In order to rectify existing infrastructural deficits and in order compete internationally Ireland must increase the level of investment in infrastructure to at least 4% of GDP. Through significantly increasing investment in key transport, broadband, housing and water projects across Ireland, Government can ensure that the economy is resilient to potential economic shocks.

 

“Brexit will undoubtedly create many challenges for the Irish economy and while it is not possible to fully Brexit-proof a Budget, Government can and should focus on strengthening the domestic economy and competitiveness to ensure that we are prepared for whatever the final outcome of Brexit negotiations may be. Our Pre-Budget 2018 Submission calls on Government to increase investment in areas that can help mitigate Brexit challenges, particularly: invest in our ports and ports access through improvements to our road network; protect the tourism sector by maintaining the 9% VAT rate; assist SME exporters through implementing an Export Working Capital Scheme; and ensure that state agencies and our overseas networks are adequately resourced.”

Chambers Ireland Pre-Budget 2018 Submission is available online here

The Pre Budget Submission is divided into three sections:

• Investing in Ireland’s Future

• Significantly increase investment in infrastructure to at least 4% of GDP. Provide investment for large-scale expansionary infrastructure projects, particularly in transport, housing, broadband, energy, water.

• Small Business Focus

• Retain the 9% VAT rate on tourism and hospitality
• Establish an Export Working Capital Scheme to assist SME exported to expand
• Establish grant support for SMEs undertaking innovation R&D
• Introduce an Employee Share Ownership Scheme
  • Tax Reform

• Review the entry point for the higher rate of tax in the immediate term with a roadmap for increasing the entry point in coming years.
• Increase lifetime limit of CGT Entrepreneurs Relief
• Provide tax certainty by reaffirming commitment to current Corporate Tax rate
• Deliver parity between self-employed and PAYE workers through rectifying a range of discrepancies