Press Release 11-10-16: Budget 2017 – Small Gains for Business While Big Challenges Remain

Chambers Ireland welcomed the pro-business measures announced today (11 October 2016) in Budget 2017 but warns that longer term concerns of business remain.

Commenting on the Government’s Budget announcement, Ian Talbot, Chief Executive Chambers Ireland said, “There is something for everyone in this Budget but the business community would have liked to see more measures to assist them as we enter an era of post-Brexit uncertainty . The reduction in the rate of Capital Gains Tax applied to Entrepreneur Relief  from 20% to 10% will be welcome and of particular relevance to high potential SMEs. Investment in childcare through direct subsidies to providers will have a positive impact on female labour market participation and job activation and is a welcome support for working parents.”

“Some of the measures announced today such as the €400 increase to the Earned Income Tax Credit for the self-employed will help Irish businesses as they enter a potentially challenging trading environment. However, the reality is that the major concerns for the business community go beyond Budget 2017. The big threats to Ireland’s economic development will need strategic level interventions on issues such as maintaining our relative competitiveness with the UK, rapidly expanding our investment in infrastructure and ensuring our export driven economy and exchequer receipts can be sustained in the face of diminishing international demand.”  

“We must adopt a sense of realism. It is not possible to “Brexit-proof” the economy and as a nation we must stand ready to be as adaptable and flexible as we have been in the past to devise strategies to address forthcoming challenges as they become clearer.”