PwC today publishes its 2022 Pre-Budget Submission for the Irish Private Business and SME sector 'Recovery and Renewal - Supporting private business and SMEs in Budget 2022'. Developed in conjunction with the Family Business Network, the Submission focuses on new and innovative tax initiatives and other measures to support home-grown Irish private businesses through the next stage of Recovery and Renewal as the country emerges with a new sense of confidence and hope.
Speaking at the launch, Nicola Quinn, Tax Partner, PwC Entrepreneurial & Private Business Practice, PwC Ireland, said: "The Government should be commended for the various supports that it has given to businesses from the very start of the pandemic, particularly in the sectors hardest hit including Ireland's SMEs and private businesses. Despite concerns about new virus strains and the very recent further delay in the reopening of the hospitality sector, there is optimism that economic activity will bounce back. However, this will be unevenly spread with a growing fear amongst private businesses that the contingency funds and support measures will be largely exhausted as we head into 2022 and beyond. Therefore, particular attention will still be needed to continue to support our private businesses, employing some 45% of people working in Ireland. It would be very disappointing to see successful businesses fail just before they have had the chance to trade again. Now more than ever we need to continue to support businesses through a new stage of recovery and renewal".
"Our 2022 Pre-Budget Submission sets out proposed measures to foster growth and create employment in the Irish Private Business and SME sector while restoring business confidence. The strategic priority areas we have targeted for support are: employment maintenance and business restoration; growth and investment; building a sustainable Ireland and business succession".
Key measures proposed include:
Colm O'Callaghan, Tax Partner, PwC Entrepreneurial & Private Business Practice, concluded: "Succession planning and planning for future exit strategies are high on the agenda for many business owners and particularly at a time when many businesses need new energy and drive for growth post pandemic. However, a key challenge for Irish private and family businesses is the efficient and affordable transfer of business assets. The survival of many businesses in these highly uncertain times will be dependent on a successful transition of the business. The retention of these businesses by their Irish founders is important for the future growth of the domestic economy. As well as this, many of these businesses are central to the survival of the local and rural areas in which they are situated. We propose a consultation process with relevant stakeholders and the Department of Finance to explore possible measures to facilitate a burdensome free transition to the next custodian".
Summary of key measures proposed are:
Key challenges facing many private business owners as they look to 2022 include restoring the workforce, attracting and retaining talent and reskilling their people for a digital future. Key measures proposed include:
To successfully reopen the economy, stimulating growth and investment in private Irish businesses needs to be a priority, particularly in the labour market for specific industry sectors. Youth unemployment also needs to be tackled. Key measures proposed include:
Succession planning and planning for future exit strategies are high on the agenda. The survival of many domestic businesses in these highly uncertain times will be dependent on a successful transition of the business to the next custodian, be that “next gens”, key management stakeholders or third party investors. Key measures proposed include:
Ireland is prioritising its transition to carbon neutrality and the private business sector also needs to embrace climate change and the challenges and opportunities this will bring. However, this must be supported by a suite of well-designed “green” tax measures. We have already launched our Green Pre-Budget Submission in June. Below are the principal recommendations targeting the private business sector:
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