Pre-Budget Campaign In Full Swing
Dublin Chamber’s pre-budget campaign is now underway, putting entrepreneurs and the Irish SME sector front and centre. The Chamber has been campaigning actively on business priorities over the last several months, arguing for improvements to a range of supports for entrepreneurs and SMEs. In its pre-budget submission, soon to be published, Dublin Chamber calls for Ireland to outmatch the UK on business competitiveness ahead of Brexit. The Chamber is leadings its recommendations with a call to move towards a 20% rate of Capital Gains Tax for all unlisted trading firms.
Dublin Chamber is calling for a prudent fiscal policy that will avoid overheating the economy while also preparing the exchequer to provide for a productive stimulus package in the event of a hard Brexit. Ireland must remain attractive to international investors while also taking action to avoid excessive reliance upon a small number of highly mobile businesses. This will require the strengthening of Ireland’s indigenous business base, both to increase the size of the overall economy and to increase the proportion of it accounted for by Irish firms.
According to Director of Public & International Affairs Aebhric McGibney: “As the last Budget before the UK’s exit from the EU, Budget 2020 has the opportunity to demonstrate serious intent about business competitiveness vis-à-vis the UK as well as its commitment to long-term planning and infrastructure investment. Government should send a strong signal in both respects. The announcement of the National Planning Framework and the accompanying National Development Plan has been followed by subsidiary plans for investment at regional and city level. It is important that Budget 2020 follows through on these, and the Chamber is offering recommendations to ensure stable and steady delivery of priority infrastructure projects.”
Dublin Chamber is recommending use of the fiscal space to prepare Dublin for the challenges ahead by strengthening the fundamentals of the economy. This will mean supporting Irish enterprise, investing in infrastructure and housing, and improving access to labour for businesses. Key recommendations include:
- Cut Capital Gains Tax to 20% for unlisted trading firms.
- Outmatch the UK on Entrepreneur Relief by raising the lifetime limit.
- Prioritise critical infrastructure projects in the Greater Dublin Area.
- Adopt new fiscal rules to guarantee delivery of planned infrastructure.
- Reduce the marginal tax benefit rate for second earners in a family with children.
- Improve the National Childcare Scheme to improve childcare affordability.