July #Jobs Stimulus Plan 2020

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.

✅Social Protection:

• 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

✅Business Supports:

• 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.

✅Taxation Measures:

• 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.

✅Capital Investment:

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.

✅Housing:

• €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.

✅Education:

• €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.