On Tuesday 13 October 2020, Minister for Finance, Mr. Paschal Donohoe T.D., delivered his Budget 2021 speech to the Dáil.
Against the backdrop of Covid-19 and the threat of a no-deal Brexit, Minister for Finance, Mr. Paschal Donohoe T.D., delivered an “unprecedented” €18 billion budget package designed to help build a “stronger, more resilient” country.
Two major assumptions underpin Budget 2021, that there will be no trade deal between the EU and the UK, and secondly that Covid-19 will continue to exist next year in the absence of a vaccine.
Budget 2021 includes a €3.4 billion recovery fund targeted at stimulating the economy and employment in the aftermath of Covid-19 and Brexit, as well an increase in expenditure on core capital programmes of €1.6 billion next year.
Business owners will welcome the additional supports announced by the Minister, which will help many businesses cope with the potential perfect storm posed by the Covid-19 crisis and a no-deal Brexit;
- new Covid-19 Restrictions Support Scheme (CRSS);
- a variation of the Employer Wage Subsidy Scheme (EWSS) beyond 31 March 2021;
- the debt warehousing provisions for SMEs will be extended for a period of a year with no interest;
- the reduction in VAT from 13.5% to 9% for hospitality and tourism businesses;
- extension of the commercial rates holiday; and
- a €30 million fund will be administered through the Ireland Strategic Investment Fund.
We have summarised the key points from Budget 2021 which we feel are relevant to our private and corporate clients and contacts. We hope you find our WENTWORTH Budget 2021 Summary useful and informative.
We would be delighted to discuss any queries you may have in relation to the impact Budget 2021 will have on you and your finances, just give us a call to arrange a meeting with a member of our tax team.
Please click on the link below for our expert analysis.