Cork Business Association (CBA) has submitted a detailed budget proposal to government to address the mounting challenges faced by local businesses, particularly in the hospitality sector.
Aaron Mansworth, President of the CBA, Dave O’Brien, Vice President and Secretary of the CBA, along with their executive and members, have outlined critical measures needed to alleviate the financial pressures that have led to unprecedented closures and economic strain in the first half of 2024.
Aaron Mansworth said, “The first half of the year has been challenging, especially for the hospitality sector. The issues around increased VAT rates, minimum wage hikes, and debt warehousing repayments have placed immense strain on businesses. While the government has delayed some additional costs, the impending expenses are still looming, and we urge the government to develop a long-term plan to ensure the survival of businesses in affected sectors.”
Key Points of the CBA Budget Submission:
- Cost of Doing Business: The CBA support a living wage for all workers in Ireland but recognize that small businesses are most affected by wage increases. With payroll margins in hospitality up by about 10% since COVID, they request:
- If the government continues with minimum wage increases, that they consider a funding mechanism for small businesses to be able to afford this.
- The government does not proceed with increasing the minimum wage for workers under 20 and in full-time education.
- PRSI:
- CBA requests a review of Employers PRSI increases and their impact on SMEs.
- They propose grants and reductions in PRSI rates to counterbalance the costs of auto-enrolment in pension schemes.
- VAT:
- The organisation advocates for a reduction in the VAT rate for food-related hospitality services to prevent further closures and economic fallout.
- Security:
- CBA highlights the urgent need for government funding for additional security measures in Cork City.
- They suggest distribution of unspent Gardaí hiring funds to businesses for security costs.
- And propose funding for community wardens and initiatives to free up Gardaí from court duties.
- BIK (Benefit in Kind):
- The CBA asks the government to legislate that all staff entertainment is not subject to BIK, aiding SMEs in attracting and retaining talent.
- Small Business Tax Credit:
- CBA proposes a tax credit for businesses with profits of €100k or less, offering a refund of 30% of Employers PRSI paid, capped at €30k, for businesses in the tourism sector.
- Entrepreneurs Relief and Angel Relief:
- CBA encourages changes to promote investment in small Irish companies and reduce restrictions on qualifying companies.
- Pensions and CGT Retirement Relief:
- The business organisation suggests increasing the private pension threshold and maintaining current taxation rules for stability.
- And request a review of recent changes to Retirement Relief to ensure businesses can be passed on to the next generation without stagnation.
- Capital Acquisitions Tax:
- CBA advocates for maintaining or improving current reliefs to support the transfer of businesses to the next generation.
- Housing and Infrastructure:
- They propose a re-introduction of the Living Over the Shop scheme and tax incentives for landlords and developers to address housing shortages.
- And urge commitment to key infrastructure projects, including the Cork Events Centre and Cork Light Rail, to support economic growth.
“We hope the contents of this submission are reviewed by the department, and that SME businesses in Cork and beyond are not continually overlooked in budgetary policies,” said Aaron Mansworth.
Click here for full budget submission