Tanaiste writes to every business owner in country

The Tánaiste, Leo Varadkar is writing to every registered business in Ireland to thank them for their efforts to date in keeping people safe during the pandemic and to update them on changes to financial supports in light of the reopening.

The letter from the Enterprise Minister, which is issuing to approximately 225,000 businesses registered with the Companies Registration Office (CRO), acknowledges the pivotal role businesses have played in keeping people safe.

In the letter, the Tánaiste states: “Businesses and employers have made a huge contribution to keeping us safe and now, thanks to your sacrifices, co-operation and the efforts of all our citizens, we are in a position to gradually reopen our economy and society.

"Our vaccination programme is on schedule. By the end of the week, nearly three million doses will have been administered and we expect to have 2.5 million people fully vaccinated by the end of July. We aren’t out of the woods yet and there will be bumps in the road but there is every reason to be hopeful again.

"The letter sets out changes to the financial supports that are available to businesses as the country reopens, following on from the publication of the Economic Recovery Plan yesterday.

“The Government announced a new Economic Recovery Plan this week, with €4 billion of stimulus to fuel the economy and help you and your business to recover and rebuild.

"Across 2020 and 2021, €38 billion was provided to help us all to weather the pandemic. This is an unprecedented level of Government spending but we believe the best chance of rapid economic recovery, of returning to full employment, of avoiding tax rises or spending cuts – is for our economy to bounce back fast."

He explains there will be a number of changes to the current financial supports as public health restrictions unwind.

"The Covid-19 Restrictions Support Scheme (CRSS) will remain in place for businesses that have to stay closed. For businesses re-opening in June and July, you will receive a double payment for the first three weeks upon reopening up to a maximum of €30,000. This will help firms with cashflow and to restock and re-engage with staff.

"The Employment Wage Subsidy Scheme (EWSS) is being extended until the end of 2021. Some adjustments are being made to how it is calculated - it will now be based on your business’ earnings for a full 12-month period relative to 2019, rather than six months to ensure businesses and workers are supported through the earlier part of the recovery.

Mr Varadkar also points out that

· The commercial rates waiver will continue in its current form during the third quarter of this year for those availing of it.

· The 9% VAT rate will be extended until the 1 September, 2022.

· Tax warehousing is being extended until the end of the year and will be interest free in 2022.

· The Pandemic Unemployment Payment will be closed for new entrants from 1st July of this year and will be gradually phased out from 7th September, so that by early 2022 it will be back in line with the Jobseekers’ Allowance.

He said the government will use €950m in EU Recovery grants to fund additional investment in higher and further education, skills, research, the digital transformation and climate action, like retrofitting homes and commuter rail. There will be a special fund of €85m to help enterprises decarbonise and €55m to help businesses to go digital.