Harris faces new Fine Gael push for business supports

• Published date: 26 March 2024
• Author: JACK HORGAN-JONES,CORMAC McQUINN , JACK WHITE
• Publication title: Irish Times (Dublin, Ireland)

CORMAC McQUINN and JACK WHITE

Presumptive taoiseach Simon Harris is set to face a renewed push from within his party to front-load moves on business supports before the summer as Fine Gael seeks to shore up support among small firms and their owners.

Some in the party are even privately of the view that Mr Harris should consider a break with convention and introduce taxation changes before the budget – with targeted reductions in VAT and employer’s PRSI for certain under-pressure sectors.

While the Coalition is rolling out a €250 million rates refund, Fine Gael backbenchers and Ministers are urging Mr Harris to go beyond already-announced measures.

They are facing criticism from employers over increased costs of doing business which they blame on recent Government interventions on sick pay, minimum wage and the introduction of pension auto-enrolment.

Ministers believe there is a need to change operating costs increased by Government actions. This could include introducing tax changes outside the normal budgetary cycle by bringing forward a finance Bill, which usually only follows the budget.

“There’s an opportunity to do something mid-year and I think we can bring a finance Bill into the summer,” said one Minister privately. A second agreed but warned that it would depend on the proposal. Measures would also have to be targeted so as to avoid giving undue benefits.

Face resistance

Such a move would likely face resistance from within the Department of Finance where officials are hostile to deviations from the established budgetary process.

Emer Higgins, the Dublin Mid-West TD who has been tipped as a potential junior minister, said it would be “ideal” to implement changes before the budget, adding that a commitment needed to come beforehand. “Even if it is not possible [before the budget], we need to signal intent,” she said. “If...