The queue of submissions for Budget 2023 has lengthened, with Retail Ireland and the Employment and Recruitment Federation both handing in their proposals for minister Donohue’s consideration.
Key focus in Retail Ireland’s submission is energy costs, with the Ibec group saying many retail businesses are struggling to cope with rapidly increasing energy prices and wider cost pressures, which will become even more acute over the coming months.
The group is calling for decisive and far-reaching government supports to help offset spiralling energy price hikes and rising labour market costs, including commercial rates relief.
“A failure to act will result in business failures and job losses,” it claimed.
Director Arnold Dillon said: “The post-Covid boost to retail was short-lived. Businesses are under intense pressure and are struggling to manage rising energy costs. These problems have been compounded by the cumulative cost of ongoing labour market reforms.
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“Unless significant further measures are introduced to support businesses through the winter, the viability of many will be in question. The government has the resources to support business and consumers, now is the time to act.”
On energy, retailers want new supports including incentives for retailers to improve energy efficiency and a commercial rates payment break, while with regard to labour costs it claims that pension auto-enrolment, the living wage, statutory sick pay and other leave proposals will dramatically increase labour costs over the coming years.
It wants what it calls “a new labour market transition rebate, funded from the National Training Fund”, to support the viability of companies managing this adjustment. This should include an initial break from NTF payments, 1% of payroll, and a further rebate of up to 2% of payroll (or two years payments) equivalent in training, skills or productivity vouchers.
Hard on their heels, the Employment and Recruitment Federation says that creating relevant and needed labour skills, reskilling, and easing the transition between sectors for workers are urgent labour policy changes it would like to see in the Budget.
Federation president Donal O’Donoghue said: “The surplus in the National Training Fund in 2022 is around €855 million. In Budget 2023, the Government should use some of these funds to accelerate skills training.
“The Budget must reduce personal tax burdens to allay concern among inward investors that our marginal tax rates, especially for higher earners, at 52%, are out of line with international standards.”
The ERF said that it, too, is concerned about the costs arising from new labour regulations.
O’Donoghue added: “Changes to the National Minimum Wage, the proposed introduction of a ‘Living Wage’, plus statutory sick pay and gender pay information legislation, a code of practice on the right to disconnect, changes to parental leave and benefits legislation, and proposed pensions auto enrolment will all dramatically increase labour costs and administration.
“With costs potentially unsustainable and threatening the viability of some businesses, consideration must be given to deferring some or all labour market legislation for at least two years, until the worst of the inflation crisis has passed.”
