Budget 2025: A Balancing Act with Missing Pieces
October 2, 2024, 9:55 am
Location: United Kingdom, England, London
Employees: 11-50
Founded date: 2016
Total raised: $995.22K
Budget 2025 has landed, and it’s a mixed bag. The government’s careful balancing act aims to please, but it leaves many entrepreneurs and small businesses feeling overlooked. The budget, crafted with an eye on the next election, showcases a fiscal surplus that glimmers like gold. Yet, beneath the surface, there are cracks.
The government’s strategy appears to favor big players. The tech giants and multinationals are the stars of this show. They receive the spotlight, while local businesses fade into the background. The measures introduced are designed to attract investment and innovation. However, they do little to ease the daily struggles of brick-and-mortar establishments.
The hospitality sector is feeling the pinch. Despite calls for a reduced VAT rate, the government has turned a deaf ear. Bars and restaurants, already battered by previous crises, face another wave of closures. The 9% VAT rate on gas and electricity remains, but the hospitality industry needed more. It needed a lifeline, not a shrug.
The recent ruling from the European Court of Justice regarding Apple’s tax case looms large. The government is eager to maintain its reputation as a friend to multinationals. In doing so, it risks alienating the very businesses that form the backbone of the economy. The participation exemption for foreign dividends is a move to simplify the tax code. It’s a step toward keeping foreign investment flowing, but at what cost?
Minister for Finance Jack Chambers emphasized the need to keep Ireland attractive to businesses. His words ring hollow for many. The measures aimed at encouraging entrepreneurship are commendable but lack the urgency that local businesses crave. The first-year payment threshold for the R&D tax credit has been raised, and various relief schemes have been extended. These are positive steps, but they feel like band-aids on a larger wound.
The government has increased the lifetime limit on gains eligible for Capital Gains Tax relief. This change may benefit a select few, but it does little for the average entrepreneur struggling to get off the ground. The increase in VAT registration turnover thresholds is another attempt to ease the burden, but it’s a small consolation for those facing rising costs.
Meanwhile, the hospitality sector is left seething. They see a budget that prioritizes tech and innovation while ignoring their plight. The minimum wage increase to €13.50 adds another layer of complexity. It’s a necessary step for workers, but it compounds the challenges for businesses already operating on thin margins. The implementation of statutory sick pay and pension auto-enrolment further tightens the noose.
The budget’s allocation of €14.1 billion from Apple’s back taxes into infrastructure projects is a silver lining. This investment could address long-term structural issues. However, businesses on the ground need immediate support. They need policies that recognize their contributions and challenges.
Entrepreneurs are the lifeblood of the economy. They are the dreamers and doers, the ones who take risks to create jobs and drive innovation. Yet, the budget fails to provide the encouragement they need. The government must recognize that fostering a vibrant entrepreneurial ecosystem is essential for sustainable growth.
The call for more support for entrepreneurs is not just a plea; it’s a necessity. Ireland must position itself as a haven for those looking to start anew. With the UK’s economy facing uncertainty, Ireland has a golden opportunity. It can attract talent and investment by creating an environment that nurtures innovation and entrepreneurship.
The budget should be a roadmap for the future, not a reflection of past priorities. It should inspire confidence in local businesses, not leave them feeling like an afterthought. The government must listen to the voices of those who are building the economy from the ground up.
In conclusion, Budget 2025 is a carefully balanced act, but it lacks the support that entrepreneurs and small businesses desperately need. The focus on attracting multinationals is clear, but it should not come at the expense of local businesses. The government must take a broader view, recognizing that a thriving economy relies on a diverse range of contributors. The time for action is now. Ireland must seize the moment and invest in its future by empowering its entrepreneurs.
The government’s strategy appears to favor big players. The tech giants and multinationals are the stars of this show. They receive the spotlight, while local businesses fade into the background. The measures introduced are designed to attract investment and innovation. However, they do little to ease the daily struggles of brick-and-mortar establishments.
The hospitality sector is feeling the pinch. Despite calls for a reduced VAT rate, the government has turned a deaf ear. Bars and restaurants, already battered by previous crises, face another wave of closures. The 9% VAT rate on gas and electricity remains, but the hospitality industry needed more. It needed a lifeline, not a shrug.
The recent ruling from the European Court of Justice regarding Apple’s tax case looms large. The government is eager to maintain its reputation as a friend to multinationals. In doing so, it risks alienating the very businesses that form the backbone of the economy. The participation exemption for foreign dividends is a move to simplify the tax code. It’s a step toward keeping foreign investment flowing, but at what cost?
Minister for Finance Jack Chambers emphasized the need to keep Ireland attractive to businesses. His words ring hollow for many. The measures aimed at encouraging entrepreneurship are commendable but lack the urgency that local businesses crave. The first-year payment threshold for the R&D tax credit has been raised, and various relief schemes have been extended. These are positive steps, but they feel like band-aids on a larger wound.
The government has increased the lifetime limit on gains eligible for Capital Gains Tax relief. This change may benefit a select few, but it does little for the average entrepreneur struggling to get off the ground. The increase in VAT registration turnover thresholds is another attempt to ease the burden, but it’s a small consolation for those facing rising costs.
Meanwhile, the hospitality sector is left seething. They see a budget that prioritizes tech and innovation while ignoring their plight. The minimum wage increase to €13.50 adds another layer of complexity. It’s a necessary step for workers, but it compounds the challenges for businesses already operating on thin margins. The implementation of statutory sick pay and pension auto-enrolment further tightens the noose.
The budget’s allocation of €14.1 billion from Apple’s back taxes into infrastructure projects is a silver lining. This investment could address long-term structural issues. However, businesses on the ground need immediate support. They need policies that recognize their contributions and challenges.
Entrepreneurs are the lifeblood of the economy. They are the dreamers and doers, the ones who take risks to create jobs and drive innovation. Yet, the budget fails to provide the encouragement they need. The government must recognize that fostering a vibrant entrepreneurial ecosystem is essential for sustainable growth.
The call for more support for entrepreneurs is not just a plea; it’s a necessity. Ireland must position itself as a haven for those looking to start anew. With the UK’s economy facing uncertainty, Ireland has a golden opportunity. It can attract talent and investment by creating an environment that nurtures innovation and entrepreneurship.
The budget should be a roadmap for the future, not a reflection of past priorities. It should inspire confidence in local businesses, not leave them feeling like an afterthought. The government must listen to the voices of those who are building the economy from the ground up.
In conclusion, Budget 2025 is a carefully balanced act, but it lacks the support that entrepreneurs and small businesses desperately need. The focus on attracting multinationals is clear, but it should not come at the expense of local businesses. The government must take a broader view, recognizing that a thriving economy relies on a diverse range of contributors. The time for action is now. Ireland must seize the moment and invest in its future by empowering its entrepreneurs.