Budget 2021 Key Highlights

Budget 2021 – Key Highlights

  • VAT rate reduction from 13.5% to 9% from 1 November 2020, in recognition of the unprecedented challenges facing the Hospitality and Tourism sector
  • extension of the commercial rates holiday, which will reduce costs for businesses
  • new COVID-19 Restrictions Support Scheme (CRSS), will offer a targeted, timely and temporary sector-specific support to businesses forced to close or trade at significantly reduced levels as a result of restrictions imposed on them in response to COVID-19
  • extension of the Employment Wage Subsidy Scheme through 2021, should it be required
  • illness benefit will be available on Day 3 of illness, rather than Day 6
  • the €3.4 billion Recovery Fund will give us the firepower we need to protect jobs
  • €10.1 billion infrastructure spending in 2021, the largest ever, ensuring there is work for the construction sector and we continue to deliver homes, schools and public transport
  • for the self-employed, increasing Earned Income Credit up to €1,650 – the same as the employee tax credit for PAYE workers – from this year, as well as fact that self-employed taxpayers will be able to warehouse their 2020 preliminary tax liability, will bring immediate relief

€100 million to help businesses adapt to Brexit

  • €8 million to undertake new market surveillance and certification, required even if a Free Trade Agreement is in place
  • €15 million to support businesses to respond to changes to customs and tariffs
  • €7 million to help the food processing industry adapt
  • €11 million for Local Enterprise Offices working with local businesses across the country
  • €675,000 for InterTrade Ireland to provide practical help to businesses trading cross-border

COVID-19 Response

  • €39 million in continued access to low cost loans for business
  • €30 million for applied research in the pharmaceutical and healthcare industry
  • €10 million to help businesses move online with the Online Retail Scheme

Recovery focused investments

  • €10 million for the IDA to develop advanced factories and industrial estates for companies seeking to invest in Ireland especially outside of Dublin
  • €30 million ringfenced for a Call to regional enterprise centres for initiatives to create jobs in every region in the country
  • €6.6 million for an Advanced Manufacturing centre in Limerick. This centre will provide a state-of-the-art facility for companies across the country to develop new technologies
  • €3 million for network of Digital Hubs to help SMEs modernise and stay connected