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July Jobs Stimulus

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The July Jobs Stimulus is a €7.4 billion stimulus package announced by the Government of Ireland on 23 July 2020 in response to the economic impact of the COVID-19 pandemic in the Republic of Ireland.[1][2][3] The package includes 50 measures to boost economic recovery and get people back to work.[4] The spending primarily includes €115 million for active travel, public transport and renewal of transport infrastructure, €75 million for primary and secondary schools to carry out reconfiguration works necessary to support schools' reopening in late August and September 2020 and €112 million in employment services and supports to deliver 47,500 training and apprenticeship places and a €450 million package of business supports including a €250 million Restart Grant to provide direct grant aid to businesses with up to 250 employees to help them with the costs associated with reopening and reemploying workers.[5][6][7][8]

The COVID-19 Pandemic Unemployment Payment, due to close on 10 August, would be extended until April 2021 and will be gradually reduced to €203 per week over that period based on the pre-pandemic earnings of the claimant as part of the package.[9] From 17 September 2020, the scheme would close to new applications and the headline rate of payment would reduce from €350 to €300.[10] The Temporary COVID-19 Wage Subsidy Scheme would be replaced by the Employment Wage Subsidy Scheme in September 2020, which would run until April 2021.[11][12]

Measures

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The package includes the following measures.[13]

Backing Ireland's Businesses

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  • The Employment Wage Subsidy Scheme will succeed the Temporary COVID-19 Wage Subsidy Scheme from September 2020 and will run until April 2021.[14]
  • The Restart Grant for businesses will be extended and expanded. The grant will rise from a maximum of €4,000 to €25,000.[14]
  • The waiver of commercial rates will be extended until the end of September 2020.[14]
  • A €2 billion COVID-19 Credit Guarantee Scheme will be announced.[14]

Helping People Get Back to Work

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Building Confidence and Investing in Communities

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  • Financial certainty through the Enterprise Wage Support Scheme, Pandemic Unemployment Scheme and Rates Waivers.[16]
  • €500 million investment in communities.[16]
  • Investment in schools, walking, cycling, public transport, home retrofitting, and town & village renewal. €1,000 allowance to promote expenditure on cycling is being increased to €1,250, and to €1,500 for electric bikes. The period to avail of this is being reduced from every five years to four years.[16]
  • Tax measures including a temporary 2% reduction in the standard rate of VAT from 23% to 21% for six months.[16]
  • Targeted measures for most vulnerable sectors.[16]

Preparing Ireland for the Economy of the Future

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  • €25 million investment in life sciences.[17]
  • Training and skills development.[17]
  • €10 million to be provided under a new Green Enterprise Fund.[17]
  • Increase in Seed and Venture Capital for innovation driving enterprises.[17]
  • Additional supports for IDA promotional and marketing initiatives targeting jobs.[17]
  • Additional supports to businesses to develop their online presence.[17]
  • €20 million Brexit fund to help SMEs to prepare for new customs arrangements.[17]
  • Expansion of Sustaining Enterprise Fund scheme.[17]

Enterprise Support Grant

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On 14 August, Minister for Social Protection Heather Humphreys opened applications for the newly revamped Enterprise Support Grant, designed to assist people who transitioned from the COVID-19 Pandemic Unemployment Payment into self-employment since 18 May.[18] The Enterprise Support Grant is worth up to €1,000 per person and is aimed at sole traders such as plumbers, electricians, carpenters and taxi drivers, who do not pay commercial rates.[19]

Stay and Spend Scheme

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On 3 September, as part of the July Jobs Stimulus, Taoiseach Micheál Martin, Minister for Finance Paschal Donohoe and Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media Catherine Martin launched the Stay and Spend Scheme to help drive sales in the hospitality sector during the off-season which has been negatively impacted as a result of COVID-19, which will run from 1 October 2020 to 30 April 2021.[20] The scheme provides a maximum of €125 in income tax credits to tax-payers who spend up to €625 in restaurants, pubs, hotels, B&Bs and other qualifying businesses.[21]

COVID-19 Credit Guarantee Scheme

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On 7 September, Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar, Minister for Finance Paschal Donohoe, Minister for Public Expenditure and Reform Michael McGrath and Minister for Agriculture, Food and the Marine Charlie McConalogue opened the new €2 billion COVID-19 Credit Guarantee Scheme to provide Irish businesses, including those in the farming and fishing sectors, with access to low cost loans as they respond to the impacts of COVID-19.[22][23] The scheme allows small and medium-sized enterprises to borrow up to €1 million, with 80% of the loan guaranteed by the state.[24][25] The COVID-19 Credit Guarantee Scheme is the largest state-backed loan guarantee for businesses in the history of Ireland.[26]

References

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  1. ^ "July Jobs Stimulus". gov.ie. Government of Ireland. 23 July 2020. Retrieved 23 July 2020.
  2. ^ Horgan-Jones, Jack; Leahy, Pat (23 July 2020). "July stimulus: Surprise tax cut and help-to-buy scheme expanded". The Irish Times. Retrieved 23 July 2020.
  3. ^ "July Stimulus: VAT reduction, Help to Buy boost, grants and subsidies". Irish Examiner. 23 July 2020. Retrieved 23 July 2020.
  4. ^ Miley, Ingrid (23 July 2020). "Government announces €5bn package to reboot economy". RTÉ News and Current Affairs. Retrieved 23 July 2020.
  5. ^ Maguire, Adam (23 July 2020). "July Stimulus: What's in it for me?". RTÉ News and Current Affairs. Retrieved 23 July 2020.
  6. ^ "July Jobs Stimulus Plan". gov.ie. Department of Climate Action and Transport. 23 July 2020. Retrieved 23 July 2020.
  7. ^ "Additional capital funding for all schools". gov.ie. Department of Education. 23 July 2020. Retrieved 23 July 2020.
  8. ^ "Minister Humphreys announces €2.3 billion expenditure on income and employment supports as part of the July Stimulus Package". gov.ie. Department of Social Protection. 23 July 2020. Retrieved 23 July 2020.
  9. ^ Miley, Ingrid (23 July 2020). "Pandemic payment to be extended until April 2021". RTÉ News and Current Affairs. Retrieved 23 July 2020.
  10. ^ "COVID-19 Pandemic Unemployment Payment Rates until April 2021". gov.ie. Department of Social Protection. 23 July 2020. Retrieved 23 July 2020.
  11. ^ Hennessy, Michelle (23 July 2020). "Pandemic Unemployment Payment extended – but some rates will be tapered from 17 September". TheJournal.ie. Retrieved 23 July 2020.
  12. ^ Gataveckaite, Gabija (23 July 2020). "July Stimulus Package Live Updates: Taoiseach announces €5.2bn economic package, with VAT cut from 23pc to 21pc and help-to-buy scheme expanded". Irish Independent. Retrieved 23 July 2020.
  13. ^ "Government launches €7.4 billion Jobs Stimulus to help businesses re-open, get people back to work and promote confidence". gov.ie. Department of the Taoiseach. 23 July 2020. Retrieved 23 July 2020.
  14. ^ a b c d Doherty, Tomas (23 July 2020). "July stimulus main points: VAT cut, help-to-buy extended". BreakingNews.ie. Archived from the original on 24 July 2020. Retrieved 24 July 2020.
  15. ^ a b c d "Government announces 7.4 billion euro Jobs Stimulus". Connacht Tribune. 23 July 2020. Archived from the original on 24 July 2020. Retrieved 24 July 2020.
  16. ^ a b c d e Collins, Sophie (23 July 2020). "Government announced details of July stimulus package to boost economic recovery". Buzz.ie. Archived from the original on 24 July 2020. Retrieved 24 July 2020.
  17. ^ a b c d e f g h "Government launches €7.4bn July Jobs Stimulus". irishbuildingmagazine.ie. 24 July 2020. Retrieved 24 July 2020.
  18. ^ "New grant to give up to €1,000 to sole traders hit by Covid-19". RTÉ News and Current Affairs. 14 August 2020. Retrieved 14 August 2020.
  19. ^ "Minister Humphreys opens applications for Enterprise Support Grant". gov.ie. Department of Social Protection. 14 August 2020. Retrieved 14 August 2020.
  20. ^ "Stay and Spend scheme launched to boost hospitality sector". RTÉ News and Current Affairs. 3 September 2020. Retrieved 3 September 2020.
  21. ^ "Government launches the Stay and Spend Scheme to support the Hospitality Sector". gov.ie. Department of Finance, Department of the Taoiseach, Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media. 3 September 2020. Retrieved 3 September 2020.
  22. ^ "€2 billion COVID-19 Credit Guarantee Scheme open". gov.ie. Department of Enterprise, Trade and Employment, Department of Public Expenditure and Reform, Department of Finance, Department of Agriculture, Food and the Marine. 7 September 2020. Retrieved 7 September 2020.
  23. ^ "€2 billion COVID-19 Credit Guarantee Scheme open". gov.ie. Department of Enterprise, Trade and Employment. 7 September 2020. Retrieved 7 September 2020.
  24. ^ Goodbody, Will (7 September 2020). "SME loan scheme opens to assist with impact of Covid-19". RTÉ News and Current Affairs. Retrieved 7 September 2020.
  25. ^ "COVID-19 Credit Guarantee Scheme". dbei.gov.ie. Department of Enterprise, Trade and Employment. Archived from the original on 19 September 2020. Retrieved 7 September 2020.
  26. ^ "€2 billion COVID-19 Credit Guarantee Scheme will provide low cost loans to businesses impacted by COVID-19 – Tánaiste". gov.ie. Department of Enterprise, Trade and Employment. 14 July 2020. Retrieved 7 September 2020.
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