The government has just announced a stimulus package to help the country move forward during COVID19.
I particularly welcome the Reduction of VAT from 23% to 21% and the extension and expansion of the Restart Grant Scheme this will help businesses in Dublin city.
- The extension of the Pandemic Unemployment Payment to 1st April 2021 with a tapered level of payment at a net additional cost of around [€300 million in 2020 and €405 million in 2021]. There will be no cliff edge fall in income but a tiered step down towards €203 depending on income prior to the pandemic to help workers adjust.
- The provision of €100m additional funding for Active Labour Market Policies. The measures will focus on work placement schemes, skills training, job search and assistance and recruitment subsidies.
- Extra €100m investment in supporting apprenticeships and further reduction to help workers re-skill.
- There will be additional provision on Community Employment & TUS schemes
- The introduction of the Employment Wage Support Scheme (EWSS) as a successor to the Temporary Wage Subsidy Scheme (TWSS). The scheme will operate from 1 September 2020 until 31st March 2021 at a net additional cost of €1.9bn. The scheme will be open to employers who are operating at 70% of turnover compared to last year with a special exemption for childcare.
- The extension and expansion of the Restart Grant Scheme to provide an additional €300m in direct grant funding. The funding will be provided to increase the maximum payment from €10,000 to €25,000, increase the minimum payment from €2,000 to €4,000, increase eligibility criteria in relation to employment and turnover and to provide grants to further specific categories including non-rateable B&Bs and rateable Sports Clubs.
- The extension and expansion of a 100% Commercial Rates Waiver to a six-month duration to end-September to cover all enterprises with the exception of a small number of categories. The total cost of the measure will be €600m.
- Up to €625 per person Stay and Spend Initiative tax rebate from October 2020 until April 2021 to support the accommodation and restaurant sectors at a cost of €270 million.
- Reduction of VAT from 23% to 21% at a cost of €440m.
- Acceleration of corporate tax loss relief for 2020 Covid related losses to release €450 million in liquidity to companies currently facing significant cash flow difficulties.
- Introduction of similar arrangements for the self-employed to release €150m.
- A legislative basis for warehousing of tax liabilities.
A commitment to maintaining the overall capital allocation for 2021 at the level of €9.2bn million, some €1 billion or 12% greater than the 2020 budget allocation to give certainty and ensure on-going long-term investment in key projects.
- €83m for a new accelerated Voids refurbishment scheme and improved water systems investment.
- €18m for the enhancement of the help-to-buy scheme so that the level of support available to first time buyers will be increased to the lesser of €30,000 (up from €20,000) or 10 per cent (up from 5 per cent) of the purchase price of the new home/self-build property.
- €75m extra for an expanded Minors Work scheme for both primary and post primary schools to get them ready for re-opening.
✅Balanced Regional Development:
- €10m extra for the Town and Village renewal scheme to help towns and villages to increase footfall and respond to immediate COVID-19 challenges.
- €5m extra to help Community Centres adjust to COVID-19.
- €20m in additional funding to support the establishment of an online trading presence for 8,000 additional micro-enterprises.
- €115m for peatlands rehabilitation and national retrofitting scheme.
- A €10m Business Adaptation grant to fund Covid-19 related capital expenditure to assist tourism and hospitality businesses • €10 million for a Business Continuity Fund for Coach Tourism Operators and €2 million for Local Urban Bus Services.
Arbour Hill, Ballybough, Broadstone, Church Street, City Centre, Clonliffe Road, Constitution Hill, Drumcondra, East Wall, Fine Gael, Grangegorman, Markets, Montpelier, North Circular Road, North Strand, North Wall, Phibsborough, Quays, Rathdown Road, Smithfield, Stoneybatter
Fine Gael Councillor - North Inner City
Leader, Fine Gael, Dublin City Council
Chair, Urban Form & Planning Strategic Policy Committee