Budget 2024 a step in the right direction for Business 

+ Dublin Chamber cautiously welcomes cost of doing business measures

Tuesday 10th of October: Dublin Chamber has welcomed the enterprise measures announced today to help enterprises secure angel investment, invest in R&D and sustain employee share ownership. A business support scheme has also been announced to help struggling firms. These measures represent a welcome step, albeit a small step, to ensure more sustained growth by indigenous firms, and do not represent the step change in enterprise supports that many firms would wish to see.  

Mary Rose Burke, CEO of Dublin Chamber said “Perhaps the most important announcement in Budget 2024, is the commitment to accelerate capital spending on vital infrastructure projects in the years up to 2026, and the introduction of the Infrastructure, Climate and Nature Fund to ensure that essential capital projects such as Metrolink, DART improvements and the Eastern and Midlands Water Supply Project, are not delayed or abandoned in the event of an economic and fiscal downturn. After many years of development, Metro North, which was due to be completed in 2016, was abandoned on the foot of the financial crash of 2008. It is vital that future investment plans are not subject to economic shocks and cyclical changes in the public finances.” 

With rising interest rates, firms will find it more challenging to raise investment finance and working capital. The idea of a Capital Gains Rate of 16-18% for investment in productive firms by angel investors has potential, but we are concerned that the upside limit in the potential gains, and other restrictions, may not attract many investors and prove insufficient to encourage growth in rapidly innovating firms. We would rather have seen a more broadly based lower rate of CGT to boost entrepreneurship and enterprise development by Irish firms. 

The additional 25% reduction in childcare fees, on top of a similar cut last year, will ensure the continued participation of many working parents in the labour force, at a time of a severe labour shortage. The commitment to additional Garda recruits to help counter growing concerns about safety on city streets is welcome. On the other hand, the failure to progress the Residential Zoned Land Tax on schedule is a concern, as this measure is central to the development of residential accommodation on vacant, serviced sites. 

Ms Burke concluded “While we cautiously welcome Budget 2024, there is a great deal of detail left out in the Minister’s speeches particularly around the implementation of business supports. We will continue to engage with Government on these issues while we wait for the publication of the Finance Bill.” 

-ENDS-

Note to Editors:  

Dublin Chamber’s 2024 Pre-Budget Submission is available to view here.  

For further information, please contact:

Órla Mannion | Public Affairs Manager | Dublin Chamber | orla@dublinchamber.ie

About Dublin Chamber: Dublin Chamber is Ireland’s largest chamber of commerce with over 1,300 member companies. It is the most representative and broadly-based business group in the Greater Dublin Area, providing representation and networking services. Its policy work focuses on developing the Dublin region’s infrastructure & transport, promoting competitiveness, and improving local governance. Dublin Chamber is also one of the oldest chambers of commerce in the world, tracing its origins back to 1782.