Budget 2023: Winter Supports

From a business perspective the key element in today’s Budget is the introduction of a Temporary Business Energy Support Scheme (TBESS) to help businesses cope with the increased costs of energy that all are suffering just now, and which are likely to increase over the winter months.

While business may judge the TBESS on how well it enables them to finance their increased costs, this is only one of the scheme’s wide range of objectives. For example, Minister Donohoe needs a scheme that is affordable, non-inflationary, reaches all the deserving cases and at the same time encourages all to conserve energy. Wholesale gas prices that are up to 12 times higher than normal increase inflation and reduce disposable income. So, the TBESS faces a very demanding to-do list.

In the area of income tax, the entry point for the 40% top rate of income tax is being increased by €3,200 to €40,000 a year. This will help middle income earners. But the retention and extension of schemes for tax relief for foreign employees such as the Special Assignee Relief Programme (SARP) point to a different problem. Combined rates of income tax, USC and PRSI that can reach up to 52% of income, are simply unsupportable.

Click on the link to download the McAvoy & Associates 2023 Budget Briefing