The value of Budget 2023
 

Dear Chamber Member,

 

I hope you, your colleagues and families are keeping well. 

 

The details of budget 2023 have been eagerly awaited by all sectors of business and society. The challenges facing businesses and households this coming year are very significant and the overall scale of the budget was reflective of this. This is an energy and inflation crisis that is unprecedented, and extraordinary measures are needed, and the detail of the measures announced will determine their true effectiveness in supporting businesses.
 
Inflation and business supports
The level of investment in supports for businesses facing rocketing energy prices is welcome and badly needed, but it is not clear whether the government’s Temporary Business Energy Support Scheme (TBESS) covering up to 40% of the increase in energy bills will be enough going into this winter. The €1.25 billion package is very positive and we will continue to advocate that government must be open to revisiting the measures as the situation evolves over the coming months.
 
The cost of living supports package for households is very important both to cushion people against rising inflation and energy prices, and to support the wider economy and consumer spending on which much of our economy depends.
 
Housing
We welcome the measures to increase affordable and social housing supply but this budget does not tackle the significant viability challenge for high density housing developments nor does it directly address the private sector supply of housing.
 
The measures will go some way to providing relief to house buyers, landlords and renters but they are not enough to trigger the increase in supply of housing that is required to tackle our housing crisis. Further measures need to be introduced, particularly for city centre brownfield sites, and Cork Chamber will continue to address this at national and local government level.
 
Renewable energy
We are disappointed not to see the required acceleration of investment and pace of delivery targeting renewable energy development and deployment, especially given recent investor exits from offshore wind developments in Ireland. Apart from confirming the modest budget for MARA, there was a concerning lack of focus on renewable energy. Something we will continue to shine a light on in order to improve our energy security and economic growth.

 
Transport
The announcements of increased transport infrastructure budgets are welcome as well as the extension of the public transport fare reductions. Accelerated capital investment in transport infrastructure, particularly Cork Commuter Rail, will help us meet our 2030 climate targets.
 
Childcare
The measures to improve the affordability of childcare are very positive. Access to childcare is a vital element to supporting our labour market and has been a real challenge for people returning to work post-Covid.
 

Tourism & Hospitality

It is disappointing that government decided not to extend the 9% VAT rate for the tourism & hospitality sector, which has been experiencing a challenging time post-COVID. The continued supports for Ireland’s night-time economy however, are positive and will contribute to retaining Cork city’s purple flag status and vibrant cultural offering.

 

We were pleased that this budget has recognised Cork Airport’s economic significance both to the south-west and nationally through the allocation of €6 million in capital funding that will support technological advancements in security screening, enhancing its overall competitiveness.

 

The increase in the limit for employer business and gift vouchers to €1000 will go some way in supporting our local urban and town retail economy into the Christmas period. We look forward to witnessing the continued resilience of Cork, and the €15 million support for the development of the events centre will further contribute to this. We welcome the additional investment in An Garda Síochána which will support the requirement for additional Garda resources in Cork city centre.

 

We will continue to lobby on your behalf and I welcome you to contact me directly on 087 9471858 or by e-mail HERE to discuss any issues affecting your business. We are here to represent you. In the meantime, I hope to see you at one of our many upcoming events, helping you to stay connected and informed.

 

Warm regards,

 

Conor Healy

CEO

 
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