October 25, 2020
Business News

Budget 2021 will boost recovery and job creation in Kilkenny, says local TD

Budget 2021 will support the economy to address the immediate challenges of the Covid-19 pandemic and a hard Brexit and help businesses to get back on their feet, a local TD has said.

Speaking after Finance Minister Paschal Donohoe unveiled the record €17.75 billion spending package yesterday, Kilkenny TD John Paul Phelan said: “The size of this intervention is unprecedented in the history of the Irish State.

“As during the last economic crisis in this country, Fine Gael in Government is supporting businesses in Kilkenny City and county get back on their feet. We saw before how employment creation was key to our economic and societal recovery and we will prioritise that once again.

“Funding for the Covid-Enterprise Support Grant for the self-employed is doubled from €12 million to €24 million to help small and medium businesses. They are the lifeblood of our economy and we will continue to support them in their hour of need.”

One of the key measures to support businesses includes the new Covid Restrictions Support Scheme (CRSS). It will come as a significant relief to businesses in restricted sectors or those based in locations that prohibit them from operating as a result of Covid-19 restrictions.

“The CRSS will supplement the existing Employment Wage Subsidy Scheme and I was pleased to hear Minister Donohoe confirm there will be no cliff edge for that scheme, which is so crucial to the businesses and workers across Kilkenny city and county relying on it. It will continue into next year,” said Deputy Phelan.

“Thanks to Budget 2021, self-employed workers will be able to earn up to €480 a month gross without affecting their PUP payment. This will benefit people in the arts community and the taxi industry for example, meaning they will no longer be prohibited from taking some work in order to keep their PUP.

“The Part-Time Job Incentive scheme is to be made available to the self-employed who intend to resume their business but can only do so intermittently or on a limited or reduced basis when they leave the PUP payment.”

Deputy Phelan (pictured below) added: “In a significant measure for self-employed people, we are increasing the Earned Income Tax Credit to €1,650. Fine Gael introduced this tax credit for job creators and we have worked tirelessly to equalise it with the PAYE Tax Credit to ensure fair play for the self-employed. Budget 2021 achieves this.

“A reduced VAT rate will assist the hospitality and tourism sector which has been hit so hard by the pandemic. The rate will reduce from 13 ½ pc to 9pc with effect from 1 November.

“Other measures to benefit job creation include the extension of the Knowledge Development Box relief for a further two years until December 2022 and an amendment to CGT Entrepreneurs Relief removing 5% holding requirement at the time of disposal, meaning a greater ability for a person to expand their business without worrying about losing this relief.”

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