Fine Gael Backs Business by Cutting Costs

• 11% VAT rate for food based hospitality, entertainment and hairdressing
• PRSI Rebate for small local businesses
• €4,000 towards energy bills for retail and hospitality businesses

Taoiseach Simon Harris, alongside Ministers Helen McEntee, Paschal Donohoe, Peter Burke and Emer Higgins, have today (Saturday), set out Fine Gael’s plans to cut costs for businesses.

Within 100 days of Government, Fine Gael will introduce a package to reduce the VAT rate to 11% for food based hospitality, entertainment and hairdressers, provide a PRSI rebate for SMEs and establish a new energy grant scheme worth €4,000 for retail and hospitality businesses.

Taoiseach, Simon Harris said:

“Small businesses are the backbone of the Irish economy. They are at the heart of every community, fuelling local economies, and providing good quality, stable jobs. They are what keep our main streets alive and we need them to survive.

“I have travelled the country, and I have heard loud and clear how business owners are struggling with costs. They need help and they need certainty.

“That is why Fine Gael will permanently cut the VAT rate to 11% for food based and entertainment businesses, as well as hairdressers, to give these businesses certainty.

“That is why we will bring in a three-year PRSI rebate for businesses with fewer than 50 staff which could be worth as much as €33,150 for small businesses struggling with rising wages. Any small business like a shop or a café with a small number of employees will benefit from this measure. To help with energy bills, a new Energy + Grant Scheme will be established to give retail and hospitality businesses €4,000 towards their energy costs.

“If re-elected, Fine Gael will back our businesses with an investment of over €800 million and will introduce this package within 100 days of Government. ”

Minister for Justice, Helen McEntee, said:

“Everyone deserves to be safe and feel safe in work, and those working in retail are no exception. Fine Gael will develop a Retail Crime Strategy and we will introduce a standalone criminal offence of assaulting a retail worker.

“In tandem, we will ensure our Gardaí have the resources they need on the ground to fight these crimes, from the rollout of body cameras and facial recognition technology to target prolific offenders, to better sharing of data and intelligence between our Gardaí and retailers.

“A rise in defamation cases is also putting pressure on retailers. Enacting new defamation legislation and introducing a new statutory defence for retail defamation, will address the rise in these claims against retailers.”

Minister Paschal Donohoe added:

“SMEs are the backbone of our economy, providing jobs in every corner of the country. Thanks to these businesses, we have record employment, 2.7 million people at work, but we are not complacent. Fine Gael will create 300,000 extra jobs over the lifetime of the Government, bringing us to 3 million people at work in Ireland.

“To achieve this, we must continue to invest in our infrastructure, and remain attractive to FDI, as well as ensuring we have the trained staff to fill these roles.

“Fine Gael has a proven track record in job creation. Since Fine Gael entered Government, 900,000 jobs have been created; 590,000 since 2020 alone.”

Minister for Enterprise, Trade and Employment, Peter Burke said:

“Businesses have made it clear to me that they need our help. Within 100 days of Government, Fine Gael will introduce a package to cut costs for SMEs, but that is only part of our plan for businesses.

“We will implement the SME test – ensuring that every piece of legislation and every government policy will be assessed on the potential impact for small businesses, before being put in place.

“Businesses need certainty from their Government, certainty on taxes but also on regulation. Fine Gael will maintain low, stable taxes for businesses, while ensuring that our regulations are clear, predictable and in line with businesses own needs.

“We will cut red tape for businesses, and remove all redundant regulations to ensure that businesspeople can focus on what they do best: running their business.

“Alongside a focus on balanced regional development, Fine Gael’s plans will help businesspeople to serve their communities, create jobs, all while making a living themselves.”

Minister Emer Higgins concluded:

“Retail and hospitality have undoubtedly been the hardest hit by cost increases over recent years. As well as addressing their cost base, we will work to encourage more people into our towns and villages.

“A fund for ‘over the street’ roofs will encourage people back into our towns even in bad weather, helping more people to live in our towns, as well as creating a diverse night-time economy, will all work to drive footfall back into our town centres.

“Local Enterprise Offices are pivotal in supporting new businesses. We will ensure that our LEOs are equipped to help the businesses in their local area, regardless of their geography. Wherever you live and start your business, you should be able to avail of LEO supports.”