10. Deputy Barry Ward asked the Minister for Enterprise, Tourism and Employment the position regarding supports for any SME that will not benefit from the planned VAT reduction in July 2026; if targeted supports for small businesses that are facing increasing costs will be considered; and if he will make a statement on the matter. [59971/25]

Sentiment score: 0.13

I welcome the VAT 9 proposal which will come into effect in July of next year. However, I am wondering, particularly in the case of small and medium enterprises that will not benefit from the scheme, if there could be targeted supports for them in respect of increased costs of doing business.

Sentiment score: 0.55

I acknowledge what the Minister has done in relation to small businesses and business supports. I also recognise that there has been a reduction in the cost of doing business, which is well and good. I support the VAT 9 scheme because it is important to provide that leg-up, particularly for small businesses who need it. The reality is, however, that it is a blunt instrument. It is a universal benefit and, therefore, it benefits those enormous companies and even those large companies that do not need the support. I recognise that it is difficult to construct a mechanism that allows us to give the benefit to one group of companies and not to others but the reality is that large companies do not need that VAT reduction. They will survive. They welcome it but they will survive without it. There are small businesses in every town and village in this country, including businesses in my own community and constituency which have been in contact with me, that need that reduction but they will not get it for whatever reason. They are outside the scheme because they are not providing certain goods. Small businesses are not all getting that benefit but are still facing increased costs of doing business. I am wondering if there could be targeted supports specifically for those small businesses.

Sentiment score: 0.26

I acknowledge all of that and in no way want to suggest the Minister is not focusing on SMEs. I acknowledge all of the work that is being done. I know SMEs are the backbone of the economy. The quibble I have in relation to the VAT 9 reduction is that it is across the board. That does not mean that big businesses are not valuable - of course, they are - but they do not need the reduction in the way that small businesses do. We have had this conversation previously and I would much rather see a targeted relief for small businesses. Whether one picks a metric of turnover, profit, number of employees or something else, there is a metric that can be picked to do this. Let us take McDonald's as an example. McDonald's is a franchise and is owned by business people all over the country who run good businesses. They will survive without the reduction to 9%. Next door to them there might be a small café that might not survive without it. The point I am making relates to the cost of this measure. As I have said, I support the measure but in terms of its cost, we would be much better off spending the bulk of that money on the SME sector than on those parts of the hospitality sector that do not need it, the large and very large companies that still provide huge value in the economy but that do not have the same reliance on the scheme.

Sentiment score: 0.14