Press release
Budget 2022 - Good for Business and Good for Workers
From Department of Enterprise, Trade and Employment
Published on
Last updated on
From Department of Enterprise, Trade and Employment
Published on
Last updated on
Budget 2022 sets out to help businesses get back on their feet as we reopen the economy and society, to prepare them for the future and to help families and workers with the cost of living.
Funding allocated to the Department of Enterprise, Trade and Employment in Budget 2022 comes on top of the measures announced in the National Economic Recovery Plan, which sets out how the government plans to get more people than ever working in long-term, future-proofed jobs.
The Tánaiste Leo Varadkar TD and Minister for Enterprise, Trade and Employment said:
"Budget 2022 is good for business and good for workers. It will secure our economic recovery and help businesses that are still struggling. The extension of the Employment Wage Subsidy Scheme (EWSS) until April 2022 at a cost of up to €1.4 billion is the largest single item announced on Budget Day. It is being done at a time when many governments are closing down similar schemes. We are doing this because we want to give every business a fighting chance to survive the pandemic and hold on to as many of their staff as they can. It’s about protecting jobs and businesses.
"There have been many ups and downs over the past year. A serious third wave of the virus and prolonged periods of lockdown – but also a highly successful vaccination programme and a near full reopening of the economy.
"This is a Budget which recognises many businesses are still struggling. There will be no cliff-edge for those that still need financial support from the State. We are extending the EWSS and a targeted rates waiver to help them get back on their feet. We’re making sure low-cost government backed loans will remain available.
"We are also looking to the future and helping those that are in a position to grow. The expansion of the Employment and Investment Incentive Scheme (EIIS), the extension of the Small Start-Up Companies Relief, the new Digital Games Tax Credit, a new €90 million Innovation Equity Fund as well as increased resources for the IDA and Enterprise Ireland will ensure this. Climate change and digital technologies are transforming the world of work and we need to make sure that Irish businesses are prepared.
"As previously announced in the Revised NDP, we will provide €20 million to help Irish enterprise decarbonise and go digital and there will be a new call for applications for the Disruptive Technology Innovation Fund. These are all designed to kick start new areas of economic growth, providing long-term, future-proofed jobs."
The Tánaiste said:
"This Budget is also about helping people with the rising cost of living. Increasing tax credits and widening tax bands will ensure that workers can keep more of the money they earn and retain most of any pay increase or increment they might get in 2022. We’re also increasing the minimum wage to €10.50 an hour from January 1st, a 30 cent increase on this year. I believe this is really important, as we need to ensure that low paid workers are protected from inflation. You’ll see that the government is doing that in many ways in this budget."
Minister of State for Business, Employment and Retail, Damien English TD said:
"In Ireland, our local small and medium enterprises are the heartbeat of our economy. They are critical in driving employment and economic activity as well as being embedded in all our communities. Budget 2022 recognises that a strong, resilient SME sector is vital to rebuilding the economy post COVID-19. Key to this will be to help SMEs transition to the green and digital economy.
"Additional funding has been allocated to Enterprise Ireland and our Local Enterprise Offices to allow them work with indigenous Irish businesses on the importance of climate change mitigation and adaption; to accelerate SME digitalisation; and on ensuring that the recovery and growth of the SME sector extends to all parts of the country.
"Given the importance of the retail sector and the benefits of trading online for retailers I am pleased we will be introducing a new round of the successful Online Retail Scheme next year. In addition, my department has recently commenced a major review of the Retail Sector and this is expected to be completed by the end of this year."
Minister for Trade Promotion, Digital and Company Regulation, Robert Troy TD said:
"Budget 2022 ensures there is continued help to those businesses and sectors who need it and sets the trajectory of our ambition to support Irish enterprises navigate the changed landscape and seize the opportunities it presents.
"Focussing on our post-pandemic recovery and embracing the opportunities in innovation will enable us to build back to an economy that is stronger and more resilient. Digital transformation will be central to this, and I am pleased to see this recognised in this Budget including the €10 million Digital Transition Fund to support Irish SMEs on their digital journey and transformation. In addition. the allocation of €3 million for the establishment of several European Digital Innovation hubs will play a critical role in facilitating the digitalisation of Irish SMEs across sectors and regions.
"Furthermore, to support our post-pandemic recovery, maintaining our standing as an attractive destination for FDI has never been more important. In addition to the other allocations to the IDA to enhance our regional offering and attract FDI to every county in Ireland, this Budget includes €6.4 million to sell Ireland as an attractive location for investment. This Budget demonstrates Government’s continued commitment to support businesses through the challenges of the past year and half and also looks ahead to the opportunities that will enable us to move with certainty into economic recovery."
Overall, the Department of Enterprise, Trade and Employment’s core budget has increased by €103 million or 13.2% on Budget 2021. This is a record core allocation for the department and will significantly bolster the ability of the department, working with its Offices and Agencies, to help businesses to rebuild and grow after the pandemic.