Budget 2023 is right around the corner, and supports are expected to be on the way for many businesses as they face rising inflation and the cost of living crisis.
This year's Budget is gearing up to have the largest cost of living package ever at a cost of at least €2 billion, the biggest cost of living package in Budget history. According to Tanaiste Leo Vardakar, the Government intends to introduce supports to help thousands of businesses with their energy bills on Budget Day.
As many Dublin businesses, particularly those in the retail and hospitality sectors, face into an uncertain winter with soaring energy bills they may receive, much needed assistance. Just last week, Tanaiste Leo Varadkar said the main objective of Budget 2023 “is going to be putting more money in people’s pockets and reducing the bills that people have to pay”.
Read more: Budget 2023: How possible measures could affect pensioners
“During the pandemic, the Government intervened to save countless jobs and businesses. For many businesses, the energy inflation crisis is comparable. It requires a response of sufficient scale, and that will happen," said Mr Varadkar.
Here is what businesses can expect to benefit from on Budget Day:
Energy Bills
Sky-rocketing energy bills including gas and electricity are most likely at the top of business owners' concerns, as many energy suppliers have announced that bills will increase from next month. However, when attending the Ibec’s President’s dinner in Dublin on Thursday night, Tanaiste Leo Varadkar said that in the Budget there would be a particular focus on helping those in retail, hospitality, manufacturing and other high energy users.
He also said the Government will provide low-cost loans, similar to the Covid Credit Guarantee Scheme. He said: "Closer to home we will make sure my own department will receive an increase in staffing so that our enterprise agencies like Enterprise Ireland, IDA Ireland, Intertrade Ireland, local enterprise offices others can continue to secure investment, invest in companies, and provide good services to businesses, like timely turnarounds on things like employment permits," he said.
Income Tax
At the Ibec president's dinner, Mr Varadkar also said that the Government would also make sure that incomes rise through things like the national minimum wage, the public sector pay deal, increases for pensioners and for people on welfare payments. He said: " We will also reduce income tax, so you get to keep more of the money that you earn," he told the business leaders.
"And that’s really important for middle-income workers who often lose half of any pay increases they get in taxes, USC and PRSI, which is unfair. It also puts more pressure on employers to increase wages and makes us less competitive when this is not the case in the UK, US or most of Europe."
VAT
The special reduced VAT rate for the hospitality sector is expected to be axed, with the rate likely returning to 13.5% A VAT cut on electricity and gas, which reduced the rate from 13.5% to 9%, is also expected to be extended.
The Government announced the measure earlier this year, beginning at the start of May, and it had been due to end at the end of October
Read Next:
- Budget 2023: Survey indicates public is 'split down the middle' over raising social welfare
- Budget 2023: How possible measures could affect middle income earners on €35,000 to €50,000
- Budget 2023: Thousands in line to receive €500 boost to pay packet
- Budget 2023: Everything we know as energy credits and Christmas bonuses among cost of living measures
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