Economic stimulus program by the Government of Ireland
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]
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]
€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
On 14 August,
Minister for Social ProtectionHeather 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
On 3 September, as part of the July Jobs Stimulus,
TaoiseachMicheál Martin,
Minister for FinancePaschal Donohoe and
Minister for Tourism, Culture, Arts, Gaeltacht, Sport and MediaCatherine 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]