Six in ten businesses benefitting from wage supports, ISME study reveals
A recent survey conducted by the Irish Small and Medium Enterprises Association (ISME) revealed that around 60 per cent of businesses are benefitting from one of the Government’s wage subsidy schemes.
ISME has been carrying out flash business surveys throughout the year to indicate how they are coping with the Covid-19 pandemic. The latest survey and eighth edition, suggests that wage supports remain the largest liquidity solution utilised by firms.
The survey found that 17 per cent of respondents are benefitting from the Government’s Covid Restriction Support Scheme (CRSS). This shows an increase from the nine per cent benefitting from it back in April.
In terms of other schemes, one in five companies said they were availing of the Pandemic Unemployment Payment (PUP) as a self-employed person. This also demonstrates a three-percentage point increase since April.
However, the latest figures revealed by the Department of Social Protection showed that the number of people getting the PUP generally had fallen to its lowest since the start of the pandemic in March of last year.
Just over 202,000 people received the payment this week, which is nearly down 10,000 since last week.
Notably, the biggest reduction was in the Accommodation and Food services sector where numbers were down over 3,000.
What is next for tourism and hospitality businesses?
An Oireachtas Committee recommended that a doubling of the CRSS payment for tourism and hospitality businesses must be considered. This is likely to stage a slow recovery over the months ahead.
It has also been recommended that the VAT rate reduction to 9 per cent for tourism and hospitality be extended until 2025. This rate had been reduced from 13.5 per cent for businesses in this sector, in response to the Covid-19 pandemic. However, it is currently due to expire at the end of this year.
Not only this but the Tourism Committee has also called for an extension to the Local Authority waiver and the doubling of the Covid Restrictions Support Scheme.
At McMahon & Co., our aim is to provide clients with comprehensive and professional services addressing all aspects of their business – especially in relation to making the most of the available business support schemes.
For more help or advice on related matters, please get in touch with our expert team today.