Family businesses welcome Budget 2021 supports but disappointed by failure to reduce Capital Gains Tax

John McGrane, Family Business Network: “Today’s budget goes some way towards enabling companies at the heart of the community to survive and thrive from one generation to the next”

13th October 2020 – The organisation representing Irish family owned businesses in Ireland has responded to the publication of Budget 2021 by Minister for Finance Paschal Donohue and Minister for Public Expenditure and Reform Michael McGrath.

Speaking following the budget announcement this afternoon, John McGrane, Executive Director of the Family Business Network, said: “Family businesses throughout the country will welcome the new stimulus measures announced today which will ultimately help to save jobs. New cash grants of up to €5,000 for businesses most impacted by COVID-19 restrictions will provide much-needed relief for family firms whose turnover has been decimated in recent months but Government should remain open to extending the scheme beyond the end of March if needed.

“Reducing the VAT rate for the hospitality and tourism sector is badly needed so that the sector can survive the difficult winter months. The expansion of the rates waiver will also provide much needed breathing space for family businesses as they focus on keeping their doors open.

“Employing close to a million people in all sectors of the economy, family businesses are also facing new obstacles in exporting to our nearest neighbour from the 1st January. The creation of the new €3.4bn National Recovery Fund will help those businesses at the coal face of disruption caused by Brexit and COVID-19.

“Although the Fund will provide critical for those operating in the agri-food, manufacturing and tourism sectors, Government needs to ensure that vulnerable businesses can access grants and supports without delay or cumbersome administrative burdens.

“However, Budget 2021 is a missed opportunity to unleash the job-creation potential of family owned firms by changing elements of our tax system. Reducing the rate of Capital Gains Tax (CGT) would have produced a ‘win-win’ for the exchequer and for our local communities. The long-awaited reforms through The Commission on Taxation need to be fully activated fast.

“Family businesses, much more than FDIs, are here for good and they will play their positive part in helping to drive a jobs-led recovery and today’s budget goes some ways towards enabling companies at the heart of the community to survive and thrive from one generation to the next.”

Ends/

For further information, or to arrange an interview, please contact:

Paul Nallon, Q4PR: paul@q4pr.ie / +353 (0) 86-8694041
Tommaso Costantin, Q4PR: tommaso@q4pr.ie / +353 (0) 86-4619680

About Family Business Network Ireland

Family Business Network Ireland is the Irish Chapter of the International Family Business Network. It was founded in 2013 by leading Irish business families and operates as an all-island organisation. It is estimated that Irish family-run businesses contribute 80% of Ireland’s economic value and employ nearly a million people – more than the State and foreign business combined.
The purpose of the Family Business Network is to promote the success and sustainability of Family Businesses in the Irish economy and communities nationwide. It is a not for profit and non-solicitation organisation that provides a confidential forum for families to discuss and address challenges specific to family businesses. The organization also provides advice on corporate governance and business structures along with assistance on succession planning.