SFA Budget Submission Aims to Future Proof Small Business Amid Spiralling Costs

Monday, 15 July 2024 - The Small Firms Association (SFA), the representative body for businesses employing fewer than fifty people, has made its Budget 2025 submission to Government. The budget submission reflects a range of concerns from small firms, most notably rising business costs. The submission is in line with the recently published SFA Policy Priorities document that was released ahead of the Local and European Elections.

Recently, the SFA produced a survey with Amárach about business costs were small firms (employing fewer than 50 people) were asked about the impact of rising business costs in the past 12 months. The survey, of almost 500 businesses nationwide, found that eighty-three percent of small businesses have experienced rising costs. The research also showed an estimated increase of 16.6 percent in average business costs. 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.

While the SFA welcomed the recent support package for SMEs announced by the Government. In particular, the increase in the PRSI threshold is a step in the right direction. The submission focusses on three topic creating better conductions for businesses to survive and hopefully flourish. They are tackling business costs, easing the tax burden, and upskilling the workforce. Within those three categories, the most pressing request are as follows:

1. The introduction of a PRSI rebate to assist small businesses with the transition towards the Living Wage rates.
2. Develop a creative tax system that can best support small firms.
3. Introduce National Training Voucher Scheme, which has the potential to boost in-company training and widen participation in upskilling and reskilling employees.

Reacting to the Budget 2025 submission, SFA Director, David Broderick said the following:

“If the Harris administration is serious about continuing its support for Ireland’s small firms, it must place small business community is at the heart of this budget. A cost of business survey, recently published by the SFA, showed that one in three businesses will run out of liquidity in six months. The same survey showed an average of a 16 per cent increase in business costs in the past 12 months. The current situation is not sustainable, and action is required.

“The key ask form the SFA is the introduction of a PRSI rebate to assist firms with the transition towards the Living Wage rates which are due to come into force.”

The SFA’s ‘cost of business’ survey published 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.

ENDS

Note to Editor:

• The Small Firms Association proudly represents a diverse membership of businesses with less than 50 employees: homegrown and spanning every sector of the economy with members found in every town and every city in Ireland.
• Read the SFA Budget Submission
• Read the ‘Cost of Business’ report
• Details of the recently published SFA Policy Priorities document (April 2024) can be found here

For more information on the SFA Budget 2025 Submission and interviews, please contact SFA Director, David Broderick - Tel: 01 605 1649 | Email: david.broderick@sfa.ie