Colm
Tel: 01-6183196
BROPHY TD Minister of State at the Department of Foreign Affairs with special responsibility for Overseas Development Aid and Diaspora
BUDGET 2021 OVERVIEW Budget 2021 is the biggest investment in the history of the State, at a time when we need it most. It will protect the lives and livelihoods of our people and meet the challenges of Covid and Brexit. It will: Protect lives from the threat of Covid-19;
Safeguard livelihoods, protect jobs and businesses, and help the most vulnerable in uncertain times;
Invest now in public services and infrastructure for the future wellbeing of our country.
Supporting the Country through Covid-19 & Brexit A Budget 2021 package of nearly €18bn to support our citizens and key public services in the pandemic, to support the economy and to increase capital investment as per the NDP. There is nearly €8.5bn for Covid-related spending in 2021, including a €2.1bn contingency. The pandemic brought unprecedented challenges to our economy. We acted decisively to counteract it, with €24.5bn of support measures (14% of GNI*). Capital investment will increase by €1.6bn to €10.1bn in 2021, the highest in our history, implementing the NDP. Capital spending has a greater stimulus on the economy.
Safeguarding Livelihoods - A Significant Business Supports Package A ‘Recovery Fund’ worth €3.4bn will be established to ensure continued support for the economy, given the challenges of Covid-19 & Brexit. This fund gives us the opportunity to respond flexibly to support the economy as is needed, as the path of the virus unfolds. It will focus on infrastructure, reskilling / retraining and supporting investment and jobs. A new ‘Covid Restrictions Support Scheme’ (CRSS) to support businesses closed due to the virus, or turnover down by 80%. This will target badly impacted sectors such as food, accommodation and entertainment, and enable them to pay their fixed costs when closed. They will be paid 10% of their first €1m turnover, and then 5% up to €4m, via ‘Revenue’. Reducing the lower rate of VAT from 13.5% to 9% for hospitality and tourism sectors.
Other measures include: The Employment Wage Subsidy Scheme (EWSS) will be extended throughout 2021, in some form. The details will be adjusted to suit the economic conditions of 2021. €300m for a further commercial rates waiver, until the end of 2020. The self-employed can now earn €480 p.m. and still qualify for PUP; enabling businesses to trade to the extent that is possible for them. Increase in Earned Income Credit from €1,500 to €1650, for self-employed.