The British Irish Chamber of Commerce has today launched its Budget 2020 submission in which it calls for the Government to reallocate larger than expected corporate tax revenue to a €1bn Brexit Response Fund to support industries most impacted by a ‘no-deal’ Brexit.
In its Budget Submission presented to the Department of Finance, the Chamber has recommended the Government invest in higher education and research links between the UK and Ireland in order to ensure the closest possible relationship with our nearest neighbour into the future.
To protect the Irish economy from the immediate threat of a ‘no-deal’ Brexit and invest in Ireland’s future needs, the Chamber recommends that Budget 2020 consider a range of policy measures including:
Establishing a €1bn Brexit Response Fund to help Irish businesses withstand a ‘Brexit shock.’
Increasing the R&D tax credit to 30% to incentivise innovation in the economy.
Reducing the headline Capital Gains Tax rate to pre-crisis levels.
Constructing an innovation campus in Dublin surrounded by an innovation district to enhance Ireland’s reputation as a top-tier location for investment.
Developing a new UK-Ireland bilateral research stream to ensure close collaboration on research and innovation post-Brexit.
Establishing of a North-South Academic Corridor to foster collaboration on areas of mutual strength between universities across the island of Ireland.
Speaking this week, Director-General of the British Irish Chamber of Commerce, John McGrane said, "Budget 2020 will be one of the most consequential budgets in the history of the State. Ireland is facing the real and growing prospect of a ‘no-deal’ Brexit outcome that will place untold obstructions on UK-Ireland trade. At this critical time, we have to balance short-term uncertainty with long-term imperatives. In the shadow of ‘no-deal’, our members are requesting the Government to do more to reassure businesses as they prepare for all eventualities."
He added, "By redirecting €1bn from the larger than expected corporate tax intake into a Brexit Response Fund, Government can shore-up indigenous businesses which are most at risk from a disorderly Brexit. From the agri-food sector to freight and haulage, SMEs across Ireland will need urgent protection."