A €5 billion investment fund, a €350 million artificial intelligence (AI) training programme and no increase in minimum wage until 2030 form part of “a pro-growth agenda” that the Government should adopt to support SMEs, according to a prebudget submission by Azets Ireland.
The professional services firm said that by adopting these measures, and more, the Government would move from “crisis management to strategic investment” for “the next phase of Ireland’s economic success”.
Azets Ireland said small businesses were “the backbone of the domestic economy and employ two in every three workers in local communities across the country” yet were “disproportionately impacted by rising costs and economic uncertainty”.
The advisory company, which employs about 350 people here, called on the Government “to postpone any planned increases in excise duty until greater stability returns to energy markets”, warning that “rising fuel costs could further squeeze already tight margins” for small businesses.
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To alleviate these pressures and promote growth in the sector, Azets proposes the creation of a “home-grown investment fund” of €5 billion from “excess corporation tax from multinationals” to be allocated for “strategic investment in small and mid-sized businesses” indigenous to Ireland.
“This fund would help to rebalance the domestic economy and support more firms to grow and compete globally,” the firm said.
It also advocates for “€350 million in funding to be ring-fenced from the National Training Fund for AI skilling and training for SMEs to enable them to upskill their people and enhance future competitiveness”.
“If SMEs are to fully harness the potential of AI, they need greater support to develop the right skills for the future,” Azets Ireland’s chief executive Neil Hughes said.
This “would help businesses build these crucial capabilities and directly enhance future competitiveness”.
It called for “a roadmap to reduce capital gains tax to 20 per cent by 2030, in line with standard rates across Europe”. The standard rate currently applied is 33 per cent.
The firm also advocated for “a simplified route for mid-sized firms to avail of the R&D tax credit”. Hughes said these measures “would help unlock access to much needed capital that can support these businesses accelerate innovation and growth”.
“Amid the escalating cost of doing business, the firm is calling for deferring planned increases in employer PRSI rates to 2027 and a cap on future contribution rates for SMEs,” the company said.
“Azets is also calling for freezing the minimum wage rate until 2030 and additional statutory entitlements for employees to help small and family-owned businesses grappling with rising labour costs.”
Hughes said “with the right supports in place, indigenous businesses can drive the next phase of Irish economic growth, creating jobs, strengthening communities and building a more resilient economy for the future”.
The budget is due to be announced on October 6th by the Minister for Finance Simon Harris and the Minister for Public Expenditure Jack Chambers.
