CEO Update Ibec launches Budget 2025 Campaign

CEO Update Ibec launches Budget 2025 Campaign

July 18, 2024

Dear Member,

Today Ibec is launching our Budget 2025 campaign - Sharpening Our Edge.

As global economic uncertainty intensifies, Budget 2025 should look beyond short-term election priorities to ensure that Ireland can cope. To do this, it is vital that the Government invests in critical skills and infrastructure to drive our economy forward.

Our comprehensive pre-Budget submission maintains that -

• Ireland's economic model faces a new global context. Despite recent turbulence, the economy is stronger, but state-driven competition, geopolitical tensions, and reduced trade openness challenge small countries like Ireland. Competing with larger countries on subsidies is impossible, so focusing on our strengths is crucial for maintaining high living standards.
• To ensure competitiveness, we must avoid past mistakes and address high costs. The National Competitiveness and Productivity Council highlights our rising costs. Budget 2025 should introduce an Employer PRSI rebate, simplify the corporate tax regime, and re-establish the 'Better Regulation Unit' to ease business burdens.
• Balancing low carbon goals with reduced energy costs is vital. Budget 2025 should introduce measures like a low carbon super deduction, expand the capital allowance regime, and allocate €400 million for a Carbon Contracts for Difference scheme.
• Investing in skills is essential. With a €2 billion surplus in the National Training Fund (NTF) by 2025, we should use it to upskill the workforce. Treating NTF spending like other specific purpose funds would support this.
• We must address underinvestment in infrastructure and public goods. Budget 2025 should ensure adequate staffing in regulatory bodies, invest €220 million in care sectors, build affordable housing, and introduce a €200 million National Training Voucher scheme.
• We need to future-proof our business model, we need a renewed focus on productivity, growth, and innovation. Budget 2025 should allocate €300 million for education and training, improve qualification recognition for non-EEA nationals, maintain retirement relief for family businesses, and invest €50 million in research and innovation, as well as €160 million in cybersecurity and digital capabilities.

The campaign launch today kicks off a number of busy months of engagement with Ministers, politicians, Government Departments, the media and other important business and economic stakeholders.

We will continue to keep updated you on our lobbying through this channel, our website and our active LinkedIn page.

As always if you have any feedback or comments, please don't hesitate to contact me.

Regards,

Danny McCoy

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