Covid-19 Update: July Stimulus Package

You may already be aware that an Taoiseach, Michael Martin announced yesterday a €7.4 billion package of measures designed to stimulate a jobs-led recovery and build economic confidence while continuing to manage the impact of COVID-19.

The main goal of this July Stimulus package is to provide a boost to the economy, building confidence and moving us towards a more sustainable future across all of our regions. This is the next stage of the national recovery and will immediately build on the billions in supports already provided during the crisis.

The main areas of interest to our members include:

• The July Stimulus document commits to maintaining the 12.5% corporation tax and to continue co-operation on tax reform with the OECD.

• Small and medium-sized enterprises (SME) will form a major part of the economic stimulus package, including a new SME taskforce to help small firms recover from the crisis brought on by the Covid-19 pandemic.

• It is set on enacting legislation immediately to help SMEs get access to cheaper finance would also be an urgent priority of the plan if the other outstanding elements of the negotiations can be agreed. The document also contains a commitment to review capital gains tax rates in each budget over the next five-years.

• €20m in funding has been allocated for two initiatives to support SMES to strengthen their customs and other supply chain infrastructure. Support will be in the form of Recruitment grants towards the costs of recruiting customs intermediaries.

• Funding of up to €5,000 towards the cost of software, IT systems and other supply chain upgrades that are needed to meet future trading and customs declaration requirements.

Wage Support Scheme

A new Employment Wage Support Scheme will succeed the Temporary Wage Subsidy Scheme and run until April 2021. Employers, whose turnover has fallen 30%, will receive a flat-rate subsidy of up to €203 per week per employee, including for seasonal staff and new employees. New firms operating in impacted sectors will also be eligible. The scheme is expected to support around 350,000 jobs into the beginning of 2021.

Pandemic Unemployment Payment
As part of the July Stimulus the Pandemic Unemployment Payment will now be further extended to April 2021 and the payment rate will be tapered over that time by introducing a new earnings-related payment rate of €250 and reducing the headline payment rate to €300.

From 17 September there will be three rates of payment:

• For people who previously earned under €200 per week is now €203.
• For people who previously earned between €200 and €300 per week is now €250.
• For people who previously earned more than €300 per week is now €300.

Restart Grant Available
The Restart Grant for Enterprises is being extended to a broader base of SMEs and expanded by €300 million, bringing the total funding of the Restart Grant to €550 million. The payment level is being increased to €25,000. Further payments may be available to firms which have already received them. Some businesses, such as B&Bs, not previously included in the scheme, will now be eligible.

To view in full the July Stimulus Package Please CLICK HERE

we will keep members fully briefed as more details of the package emerge.

Brokers Ireland will continue to work on your behalf and do our upmost to keep you fully informed as updates become available. We welcome any member queries that you may have and we ask that you directly email queries to the following contacts:

• Life/Financial Services – rachel@brokersireland.ie
• General – cathie@brokersireland.ie
• Compliance/Central Bank – compliance@brokersireland.ie

Kind Regards

Diarmuid Kelly
CEO
Brokers Ireland