The manifesto calls for a bold and new approach to ensure the prosperity of the small business community for the decades ahead. It also includes various measures to secure the survival of vulnerable businesses in the short-term.
One of the key asks is for the Government to develop a comprehensive roadmap for small businesses. This roadmap would provide both predictability and a joined-up approach for the tax treatment of small businesses including supporting on growth and succession planning.
More specifically, the SFA is calling for the introduction of a PRSI rebate for the most exposed businesses. It would be based on a rebate for each worker below an agreed earnings threshold, which is something that the SFA had requested ahead of the recent Budget. The SFA also wants creativity around the tax system to support small businesses such as a cut in Capital Gains Tax and a reduction to the rate of income tax on dividends per annum per person on Angle Investor Relief.
Reacting to the publication of the manifesto, David Broderick, SFA Director said:
“The next government needs to put small businesses at the heart of its programme. The best way to do this is to develop a roadmap for small businesses that will foster economic growth for the second quarter of the 21st Century.
“Rising business costs remain a critical issue for most small businesses. The SFA manifesto lists a range of measures that the next Government must adopt to mitigate against these costs. Most notably, a temporary PRSI rebate for small businesses is a key request which the SFA has been calling for in recent months.”
In the aftermath of the recent Budget, the SFA expressed concern with the 80-cent increase in the National Minimum Wage to €13.50 which is likely to significantly add to labour costs for small businesses.
In May the SFA, in partnership with Amárach, published an extensive survey on business costs. Almost 500 businesses nationwide were interviewed which found that eighty-three percent of small businesses have experienced rising costs in the past 12 months. The research also showed an estimated increase of 16.6 percent in average business costs during that time. 57 percent of businesses say that labour costs have contributed to rising costs Alarmingly, 35 percent of businesses stated that they could not trade beyond six months without additional funding. The SFA’s ‘cost of business’ survey also showed that 45 percent of small businesses say insurance costs have contributed to overall rising costs while 37 percent cited an increase in raw material costs.
