Dáil Éireann Debate, Thursday - 24 October 2024
67. Deputy Niamh Smyth asked the Minister for Enterprise, Trade and Employment for an update on the supports available to businesses with the rising cost of energy in running a business, particularly those in the hospitality sector, which has seen a number of closures recently. [43400/24]
Amharc ar fhreagraI am very aware of the difficulties the hospitality sector continues to face right around the country due to the costs associated with doing business. SMEs are crucial to our towns and villages. The Increased Cost of Business scheme this year alone has successfully paid out over €244 million to 75,000 SMEs, including two payments to over 38,000 SMEs in the retail and hospitality sector.
In recognition of the importance of the hospitality and retail sectors, I announced the Power Up Grant with a budget of €170 million as part of Budget 2025. The Power Up Grant builds on the success of the Increased Cost of Business Scheme. This grant is for businesses in the hospitality, retail and beauty sectors who received a second payment of the ICOB grant. Up to 39,000 of those businesses are now in line to receive a €4,000 Power Up Grant once they continue to meet the eligibility requirements.
I have also introduced a range of other supports that are aimed at assisting SMEs, including those in the hospitality sector.
I also introduced changes to the Local Enterprise Office Energy Efficiency Grant to make it more attractive to SMEs. The Energy Efficient Grant supports capital investment by businesses to reduce carbon emissions based on energy efficiency projects. The scheme supports companies to reduce their carbon emissions and overall energy costs by accelerating the adoption of low carbon technologies or processes identified through a Green for Business, Green Start or SEAI Energy Audit. The grant now offers 75% of project costs, up to a maximum of €10,000. Applications are open since 12 July.
The LEO Digital for Business consultancy assists businesses in understanding digitalisation and its benefits, and developing a digital roadmap for the business, contributing to the overall target of basic digital intensity for small businesses. Digital for business is free with no cost to the applicant.
On 4th September the Grow Digital Voucher was launched. Under this new offer, the funding available has been increased to up to €5,000 and the eligibility criteria expanded to cover a wider range of digital interventions available to a broader range of businesses compared to the Trading Online Voucher.
I launched the National Enterprise Hub on 10 July 2024, it is a new all-of-government service, funded through my Department and operated by Enterprise Ireland. It is staffed by expertly trained advisors and is focused on helping businesses access a range of government supports.
Separately, while the 13.5% VAT rate applied to the hospitality sector remained unchanged following the Budget, there were a number of enterprise tax measures announced in Budget 2025 which will be of relevance to businesses operating in the sector. These include:
• Changes to the CGT Retirement Relief to support intergenerational transfers;
• Raising the VAT registration threshold to €85,000 for goods and €42,500 for services;
• Enhancements to the Small Company Start Up Relief;
• Increasing the Small Benefit Exemption Limit to €1,500, and the number of benefits allowable from 2 to 5 annually;
• A €125 increase in the Earned Income Tax Credit.
