Press release
Pro-business budget to protect our economic wellbeing
From Department of Enterprise, Trade and Employment
Published on
Last updated on
From Department of Enterprise, Trade and Employment
Published on
Last updated on
Minister for Enterprise, Trade and Employment Peter Burke has welcomed his department’s Budget 2025 allocation of €1,035 million, an increase of €50 million on the previous year. This includes €424 million in current funding, €611 million in capital funding together with access to additional expenditure through own resource funding.
Minister Burke highlighted how the budget allocation was confirmation of his commitment to employers and employees:
"Over 95% of all companies in Ireland are SMEs and they are vital to our success as a broad-based economy. I have introduced a wide range of supports to date but realise that challenges remain, such as energy costs. I am pleased to welcome the €4,000 Power Up Grant which will provide support to businesses in the retail and hospitality sectors. I have secured €170 million to ensure this is a significant and meaningful intervention for our SMEs.
“Other key changes for our SME sector include increases to the VAT registration thresholds that apply for the supply of goods and services to €85,000 and €42,500 respectively, increase to the earned-income tax credit and changes to retirement relief.
“The intergenerational transfer of Irish family businesses continues to be supported by Government, with an increase in the upper age limit, a cap on Retirement Relief of €10 million and a clawback period of 12 years for relief available for disposals over €10 million. It’s important to support our indigenous enterprises to scale and grow, and this change will benefit the many businesses who have raised this issue with me.
“I am delighted that this Budget contains several tax measures to encourage and incentivise innovation. The first year payment threshold for the R&D tax credit will increase from €50,000 to €75,000, providing further cash-flow support to those companies undertaking smaller R&D projects or engaging with the credit for the first time. It has been a longstanding commitment of Government to support and promote start-up and scaling businesses to attract funding through incentives such as the Employment Investment Incentive, the Start-Up Relief for Entrepreneurs and the Start-Up Capital Incentive, and the Budget sees all three schemes extended for a further two years, to the end of 2026. The amount an investor can claim relief on under the Employment Investment Incentive is also doubled from €500,000 up to €1 million, while the relief available under the Start-Up Relief for Entrepreneurs has increased from €700,000 to €980,000.
“With regard to Capital Gains Tax, relief targeted at investors in innovative start-ups, which was announced last year, there is now an increased lifetime limit on gains to which the relief applies from €3 million to €10 million. This relief will further drive a thriving business angel investment ecosystem in Ireland."
To support new start-up companies, the section 486C Small Company Start-up Relief from corporation tax is being enhanced by introducing a new method for companies to qualify for the relief by reference to Class S PRSI, thereby extending the scope of the relief to small owner-managed start-up companies. For businesses scaling up, a new relief will be introduced for expenses incurred in connection with a first listing on an Irish or European stock exchange, subject to a cap of €1 million, and in addition a Stamp Duty exemption will be introduced in the coming year. This will enable Irish SMEs to access equity via financial trading platforms designed to support their funding needs.
Minister Burke continued:
"I am also pleased to confirm an increase of 80 cent to the National Minimum Wage, bringing it to €13.50 from January 1st 2025, fully meeting the recommendation of the Low Pay Commission. This reinforces our commitment as a government to find a balance between a fair and sustainable rate for low paid workers, and one that will not have significant negative consequences for employers and competitiveness. The increase in the minimum wage should be considered as part of the overall budget package in tandem with the measures I have secured to support SMEs."
Dara Calleary, Minister of State for Trade Promotion, Digital and Company Regulation, said:
"Budget 2025 is a progressive budget for both businesses and citizens. This government is fully aware of the ongoing challenges facing business. The Power Up Grant of €4,000, following our recent successful ICOB (Increased Cost of Business) schemes, is designed to provide a direct financial boost to our small and medium enterprises.
“I welcome the additional €2.75 million in funding being provided to the Competition and Consumer Protection Commission (CCPC). The increased funding reflects the Commission’s added responsibilities and is ultimately good news for the consumer.
“Increased funding of €590,000 for the Companies Registration Office will ensure that they can meet an increase in demand for their services while an increase in the allocation to the Corporate Enforcement Authority will enable them to recruit specialist staff in order to continue their important work.
“Budget 2025 will positively benefit employers, employees and all in our society and will ensure that our economy continues to prosper and deliver job growth across the country."
Emer Higgins, Minister of State for Business, Employment and Retail said:
"Budget 2025 provides increases for a number of regulatory bodies under my remit, including the National Standards Authority of Ireland, the Workplace Relations Commission and the Health and Safety Authority, all of whom play vital roles in ensuring that our growing economy protects the interests of workers, businesses, consumers and citizens.
“As Minister with responsibility for retail I am pleased that the new Power Up Grant will deliver a much-needed cash injection to 38,000 retailers and hospitality to help with the increased costs of doing business."
The new €170 million Power Up Grant will provide support to commercially rateable premises in the retail and hospitality sectors. This is in recognition of increased energy costs in recent years, in particular electricity costs. A flat grant of €4,000 will be provided to companies that qualified for, and received, the second round of the ICOB grant, together with businesses which became rateable for the first time in 2024.
IDA Ireland will receive an additional €15.5 million in funding next year in recognition of the increasing competition internationally for FDI. IDA Ireland will target significant FDI investment in 2025, with a focus on Research Development and Innovation, Sustainability and Digitalisation. The additional funding will help IDA to strengthen its team and deliver enterprise-focussed property solutions across the country reflecting the government’s commitment to regional development. It will also ensure that the IDA further support the decarbonisation of industrial emitters which is key to achieving the 35% reduction target by 2030.
Enterprise Ireland will receive an increase of €9.7 million in 2025. The additional funding will allow the Agency to progress a new 5-year programme of its Seed and Venture Capital Scheme which will see a total fund of €250 million invested in equity funding to innovative Irish start-ups.
Enterprise Ireland also has a key role to play in driving the decarbonisation of Ireland’s industrial emitters over the coming years and the additional funding being provided will ensure that indigenous enterprises can continue to access targeted supports on their decarbonisation journey.
A further €1.17 million is being allocated in capital funding to the department’s Science and Technology Development Programme to further enhance the digital, innovation and commercialisation programmes offered by Enterprise Ireland. Also, an additional €674,000 in current funding is being provided including to progress the feasibility phases of both the Offshore Wind and Precision Fermentation Centres.
The department’s Regulatory Bodies have key responsibilities in ensuring an appropriately regulated marketplace that maintains high standards in employment rights, consumer protection, workplace health and safety, company law, competition and quality corporate reporting.
The funding of the Workplace Relations Commission is being increased by €2.4 million which will ensure that it can recruit more inspectors to oversee the enjoyment of these rights by workers, as well as additional officers to adjudicate on workplace disputes.
The Health and Safety Authority will receive additional funding of over €4 million next year to recruit additional inspectors and specialist staff to oversee the safety, health and welfare of people in their work. It will also enable the Authority to expand and renovate its regional office network as well as further supporting its Educational and Awareness Programmes and progressing the HSA’s digital transformation. The high-risk sectors of construction and farming will remain a priority for the HSA as well as the health and social care sector.
Budget 2025 sees the funding of the Competition and Consumer Protection Commission increase by €2.7 million in order to assist them with their assumed new responsibilities under the Digital Services and Digital Markets Acts as well as the Data Governance Act. The funding will allow the Commission to recruit further staff and invest in a new case management system.
The National Standards Authority of Ireland (NSAI) will receive an additional €2.25 million to recruit additional staff to meet increased demands on its Standards and Legal Metrology Services. The Companies Registration Office (CRO) will receive an extra €589,000 to augment staffing resources to meet the increased demand for its services while the Corporate Enforcement Authority (CEA) are allocated an additional €417,000 for the recruitment of extra specialist staff.
The Irish Auditing and Accounting Supervisory Authority will receive an increased allocation of €454,000 for additional staff, to meet additional functions assumed by the Authority under the Corporate Sustainability Reporting Directive.
InterTradeIreland have been allocated an additional €951,000 to deliver specific initiatives in areas such as its Cross-Border Trading Hub while another €600,000 has been provided for the Peace Plus EU Cross-Border Funding programme to support activities that promote cross-border economic development.
An increased allocation of €384,000 will support the development of the National Clustering Programme, and an additional €100,000 has been to support the work of the government’s Artificial Intelligence Advisory Council for 2025.
A number of the department’s agencies generate income from activities such as equity investments in clients. Subject to agreement, they can use this income together with their exchequer allocations to fund their work programmes. It is estimated that our agencies will generate in the region of €200 million in 2025 which will be used to deliver further on their remits.
Minister Burke went on to say:
"There is a real need for significant progress, at EU and national level, in areas such as infrastructure to enhance capacity, skills utilisation, supporting enterprise to scale and prosper, along with appropriate incentives for innovative firms. The measures announced today demonstrate that the government recognises the importance of action in these areas to protect our future competitiveness, and ultimately our future economic wellbeing."