WELCOME GIVEN TO BUDGET PRUDENCE AHEAD OF BREXIT
THE overall approach of the Government to opt for Budget prudence and to prepare for the very real possibility of a No-Deal Brexit was welcomed by the Chambers of Commerce Ireland.
Chambers Ireland President Siobhan Kinsella said: ‘Under normal circumstances, with the economy performing as well as it has been, we would be expecting a very different Budget. But in the words of the Minister, this is an uncertain and unprecedented time. We called for a Budget which would focus on steadying the ship of state and provide greater clarity regarding the measures that are to be made available in a no-deal Brexit scenario.
She added: ‘ We agree that it is a wise approach to provide financial flexibility into the Budget which will allow the government to respond and adapt to the consequences of a No-Deal Brexit, particularly if its impact is worse than foreseen. One recommendation we would make to Government is to call for any new support to be easy to access and easy to understand. The likely chaos of a crash-out Brexit will mean that SMEs will need access to immediate support and swift interventions.’
The business lobby group said it had been hoped the climate aspect of the budget would include a nationwide roll out of electric charging points for cars.
Other issues including the housing crisis were not adequately addressed argued the Chambers president.
‘ The supply of affordable and appropriate housing remains a critical issue for the business community, affecting productivity, recruitment and inflating wage growth demands. With so many economic threats on the horizon, policy uncertainty would discourage investment, therefore the maintenance of existing housing policies, such as Rent Pressure Zones and Help to Buy, is useful.’
She added: ‘ We are disappointed with the low level of funding available to the Land Development Agency which suggests that there will be another year of missed opportunities for that agency. There needs to be a more ambitious vision for housing policies and this vision must integrate the requirements of the climate action plan and the national development plan.’
Meanwhile she welcomed ‘ the reforms to the KEEP scheme and the increase to Earned Income Tax Credit, which are long over-due, will be well-received by the self-employed and entrepreneurs. Ultimately, it’s the big things, like affordable housing and childcare, that businesses will need to see much more progress on in the months and years ahead.’