The Cabinet has approved a new package of measures to support small and medium-sized enterprises facing rising costs. This includes additional cash payments to businesses in the retail and hospitality sectors, using unused funds from the Increased Cost of Doing Business Scheme. Only 60% of eligible firms initially accessed up to €5,000 under the scheme, leaving money available for further use.
Other measures include an adjustment to the employer’s PRSI threshold and increased funding for energy efficiency measures. Despite calls for a VAT reduction in the hospitality sector, no such proposal was made. Business groups continue to advocate for a bespoke support package tailored to food-led businesses with VAT considerations.
The Minister for Enterprise has engaged with the Low Pay Commission to consider the cumulative impact of government policy changes on businesses. Retail Ireland has welcomed the measures but stresses the need for more support in the upcoming Budget and a strategic approach to managing future cost increases.