Budget 2025: A Mixed Bag for Business and Housing
October 2, 2024, 9:55 am
Location: United Kingdom, England, London
Employees: 11-50
Founded date: 2016
Total raised: $995.22K
The recent Budget 2025 has stirred a pot of mixed reactions. Business groups are raising their glasses, while the housing sector remains cautious. With a hefty €10.5 billion package on the table, the government is trying to strike a balance between electoral promises and economic realities.
The hospitality sector, a vital cog in the economy, is left wanting. No VAT reduction means the industry continues to feel the pinch. However, other sectors are finding silver linings. The government’s commitment to invest €14.1 billion from the Apple tax into infrastructure is a beacon of hope. This investment is not just a drop in the ocean; it’s a tidal wave aimed at rejuvenating the economy.
Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe unveiled a series of measures that have been dubbed "wins for business." Among these, €1.6 billion in additional capital spending stands out. Business groups like Ibec are hailing this as a significant step forward. The overall spending mix may lean towards electoral priorities, but the long-term investments in infrastructure and skills are crucial.
The budget allocates €1.46 billion for tax adjustments. This includes €1.84 billion in tax cuts, balanced by €375 million in increases. The spending plan also earmarks €5.3 billion, with €3.4 billion dedicated to maintaining public services. This is not just about numbers; it’s about stability in a fluctuating economy.
Infrastructure is the backbone of any economy. An additional €1.6 billion will be funneled into infrastructure projects next year. The Infrastructure, Climate, and Nature fund will receive €2 billion, paving the way for future investments. The sale of AIB shares will contribute €3 billion to non-Exchequer infrastructure projects. This includes significant allocations for water, electricity, and transport. The government is not just building roads; it’s building the future.
Education also gets a slice of the pie. The budget promises €1.5 billion in funding for research and education through 2030. This is a nod to the importance of a skilled workforce in a rapidly changing job market. Ibec views this as a validation of its push for the National Training Fund to be utilized for workforce development.
Income tax adjustments are another highlight. The standard income tax rate cut-off will rise by €2,000, benefiting many workers. The middle band of USC will see a reduction from 4.5% to 3%. These changes are designed to keep pace with wage growth, ensuring that workers feel the benefits of a thriving economy.
However, not all sectors are celebrating. The hospitality industry, which has been struggling, finds itself overlooked. The absence of a VAT reduction is a blow. The government’s focus on voters ahead of the general election may have overshadowed the needs of this vital sector.
On the housing front, the extension of the Help-to-Buy scheme until 2029 is a welcome relief for first-time buyers. This scheme provides a tax rebate of up to 10% for newly built homes, easing the financial burden on those entering the property market. Yet, the Society of Chartered Surveyors Ireland (SCSI) argues that more needs to be done. They call for the removal of levies and utility charges to further drive down costs.
The rental market is another area of concern. While renters may appreciate the €250 increase in the renter’s tax credit, landlords are left feeling shortchanged. The extension of pre-letting expense relief to 2027 does little to address the fundamental issues plaguing the rental market. The SCSI advocates for a rental court to streamline dispute resolution, a move that could benefit both tenants and landlords.
The budget is a balancing act. It aims to address immediate needs while laying the groundwork for future growth. The government’s commitment to infrastructure and education is commendable. However, the lack of support for the hospitality sector and the complexities of the rental market raise questions.
In conclusion, Budget 2025 is a mixed bag. It offers hope for businesses and first-time homebuyers but leaves some sectors feeling neglected. The government must navigate these waters carefully, ensuring that all sectors can thrive. As the economy evolves, so too must the strategies that support it. The path forward is not just about numbers; it’s about people and their livelihoods. The budget is a step, but it must lead to a more inclusive and robust economy.
The hospitality sector, a vital cog in the economy, is left wanting. No VAT reduction means the industry continues to feel the pinch. However, other sectors are finding silver linings. The government’s commitment to invest €14.1 billion from the Apple tax into infrastructure is a beacon of hope. This investment is not just a drop in the ocean; it’s a tidal wave aimed at rejuvenating the economy.
Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe unveiled a series of measures that have been dubbed "wins for business." Among these, €1.6 billion in additional capital spending stands out. Business groups like Ibec are hailing this as a significant step forward. The overall spending mix may lean towards electoral priorities, but the long-term investments in infrastructure and skills are crucial.
The budget allocates €1.46 billion for tax adjustments. This includes €1.84 billion in tax cuts, balanced by €375 million in increases. The spending plan also earmarks €5.3 billion, with €3.4 billion dedicated to maintaining public services. This is not just about numbers; it’s about stability in a fluctuating economy.
Infrastructure is the backbone of any economy. An additional €1.6 billion will be funneled into infrastructure projects next year. The Infrastructure, Climate, and Nature fund will receive €2 billion, paving the way for future investments. The sale of AIB shares will contribute €3 billion to non-Exchequer infrastructure projects. This includes significant allocations for water, electricity, and transport. The government is not just building roads; it’s building the future.
Education also gets a slice of the pie. The budget promises €1.5 billion in funding for research and education through 2030. This is a nod to the importance of a skilled workforce in a rapidly changing job market. Ibec views this as a validation of its push for the National Training Fund to be utilized for workforce development.
Income tax adjustments are another highlight. The standard income tax rate cut-off will rise by €2,000, benefiting many workers. The middle band of USC will see a reduction from 4.5% to 3%. These changes are designed to keep pace with wage growth, ensuring that workers feel the benefits of a thriving economy.
However, not all sectors are celebrating. The hospitality industry, which has been struggling, finds itself overlooked. The absence of a VAT reduction is a blow. The government’s focus on voters ahead of the general election may have overshadowed the needs of this vital sector.
On the housing front, the extension of the Help-to-Buy scheme until 2029 is a welcome relief for first-time buyers. This scheme provides a tax rebate of up to 10% for newly built homes, easing the financial burden on those entering the property market. Yet, the Society of Chartered Surveyors Ireland (SCSI) argues that more needs to be done. They call for the removal of levies and utility charges to further drive down costs.
The rental market is another area of concern. While renters may appreciate the €250 increase in the renter’s tax credit, landlords are left feeling shortchanged. The extension of pre-letting expense relief to 2027 does little to address the fundamental issues plaguing the rental market. The SCSI advocates for a rental court to streamline dispute resolution, a move that could benefit both tenants and landlords.
The budget is a balancing act. It aims to address immediate needs while laying the groundwork for future growth. The government’s commitment to infrastructure and education is commendable. However, the lack of support for the hospitality sector and the complexities of the rental market raise questions.
In conclusion, Budget 2025 is a mixed bag. It offers hope for businesses and first-time homebuyers but leaves some sectors feeling neglected. The government must navigate these waters carefully, ensuring that all sectors can thrive. As the economy evolves, so too must the strategies that support it. The path forward is not just about numbers; it’s about people and their livelihoods. The budget is a step, but it must lead to a more inclusive and robust economy.