From Department of Public Expenditure, NDP Delivery and Reform
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As the economy reopens and begins to recover, this is the moment for Government to build on the momentum and put the right supports in place for businesses and employment. The focus of the Jobs Stimulus is to support businesses, employment and economic activity to ensure the proper functioning of the economy and renewal and recovery across all sectors and regions.
This Job Stimulus package includes measures that will:
The Jobs Stimulus is the first step in this Government’s mission to reignite and renew the economy following the impact of Covid-19. It aims to build on the recovery to date and the measures previously announced with a further €4.3 billion of spending on supports that will have an immediate impact on businesses, employment and economic activity. The overall value of the package, including tax changes and the opening of the €2 billion Covid-19 Credit Guarantee Scheme is around €7.2 billion.
These latest measures bring the overall increase in expenditure for 2020 to an estimated €16.2 billion relative to the spending estimates set out in December 2019 also taking into account further spending that may be required to support key sectors as the year progresses. Including loan schemes, investment funds and tax deferrals, the Government has made some €22 billion in funding available to support business and employment since the outbreak of the pandemic. There has also been significant further expenditure on our healthcare system and other pressures resulting from the impact of Covid-19.
Minister McGrath said: "The July Jobs Stimulus is an ambitious collection of measures to support the re opening of our economy. These measures will support employment and help businesses to return to normal activity and also promote investment in our country’s future resilience and prosperity. This Jobs package of over €7 billion is a really important boost to our economy and will help give confidence to businesses, employers and workers. I am confident the Irish economy can and will recover. We will do all we can to work to make that happen".
A summary of the spending measures announced as part of the package can be found below with information on the specifics of each measure available on the websites of the relevant Government Departments. Details on the tax measures of the package can be found on the Department of Finance website.
Employment Wage Subsidy Scheme – This scheme will employment in businesses who are experiencing reduced turnover. A rate of €203 or €151.50 gross per week, linked to the rate of jobseekers allowance, will be paid to eligible business for each employee depending on their gross weekly pay. The scheme will be in place until the end of March 2021. It is estimated that it will have gross cost of an additional €1.9 billion.
Pandemic Unemployment Payment - The Pandemic Unemployment Payment will be extended with tapered payments until 1st April 2021. The scheme will be closed to new claimants from 17th September with a reversion to the pre-existing income support measures for new cases of unemployment. All Pandemic Unemployment Payment recipients will be required to engage in activation conditions from September. This extension is estimated to have gross cost of an additional €700 million.
Active Labour Market Policies, Training and Reskilling - A €200m package has been announced containing a range of measures including employment incentives for businesses to hire apprentices and young people, funding to help people find work, and funding for training and reskilling. This will assist the proper functioning of the labour market as the economy reopens and prepare our workforce for structural changes to our labour market as a result of Covid-19.
Commercial Rates - To provide further assistance to impacted businesses that are striving to recover, the commercial rates waiver is being extended to the end of September for all businesses with a small number of exceptions for businesses who have seen a minor impact on operations from Covid-19. It is estimated that the six month waiver, including the three month waiver announced in May, will cost €600 million.
Restart Grant – To provide further support to small and medium enterprises, the Restart Grant announced in May is being expanded and extended. This will expand the number of firms eligible for grant funding and provide further grant funding to those that have already received the Restart Grant. Firms with up to 250 employees will now be eligible. Enterprises that could not access the original grant scheme such as B&Bs and rateable sports businesses will be eligible for a grant payment of €4,000. The maximum payment under the Restart Grant will now be €25,000, increased from €10,000. The minimum payment will be €4,000, increased from €2,000. The enhancements to the Restart Grant are estimated to provide an additional €300 million in supports to small and medium enterprise bringing the total support available through the Restart Grant to €550 million.
Liquidity and Enterprise Investment Measures - €150 million is being made available for a range of measures that can further support enterprises across sectors in responding to the impact of Covid-19 and fostering investment in potential growth areas. The funding will support a number of initiatives including reducing the interest rates of loans for small and medium enterprises, expanding the amount of loans available through Microfinance Ireland, investment in Brexit training and infrastructure and investment in the Covid-19 Life Sciences industry.
A further €500 million capital expenditure is now being allocated to Departments which will accelerate a broad range of projects in 2020 and support the momentum of economic recovery in 2021. The projects and programmes have a wide geographic and sectoral scope, and notably including housing, education, sustainable transport, environmental protection and heritage/tourism. They include: