Small businesses believe Budget 2022 will boost recovery

Majority say extending wage subsidies and VAT cut can aid job creation

The research found that 57 per cent of small- and medium-sized businesses believe the budget will create the conditions for post-Covid recovery and economic expansion in 2022. Photograph: iStock

The research found that 57 per cent of small- and medium-sized businesses believe the budget will create the conditions for post-Covid recovery and economic expansion in 2022. Photograph: iStock

 

Most small businesses believe Budget 2022 will create the conditions for a post-Covid recovery, research shows.

Post-budget analysis by Grant Thornton and the Association of Chartered Certified Accountants indicates that a majority of companies are confident that the package announced by the Government last week will aid growth.

The research found that 57 per cent of small- and medium-sized businesses believe the budget will create the conditions for post-Covid recovery and economic expansion in 2022.

A similar proportion say keeping the 9 per cent hospitality VAT rate until September and extending the Employment Wage Subsidy Scheme (EWSS) would allow businesses to plan for changes once these measures end.

Respondents also highlighted targeted waiving of commercial rates, changes to the Employment Investment Incentive Scheme and extending the corporation tax waiver for start-ups as moves that would help create jobs.

Further cash

However, 51 per cent of small businesses need futher cash to invest in remote working, while only 13 per cent said the Government’s tax deduction would aid that.

Caitriona Allis, head of ACCA Ireland, predicted that the confidence created by the budget would boost business momentum in the months ahead.

“The extension of the EWSS to April 2022 and the continuation of the 9 per cent VAT rate until September will help businesses invest in the short-term and support them in achieving their full potential in the long term,” she said.