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Economic Recovery Plan 2021

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Irish response to the COVID-19 pandemic

The Economic Recovery Plan 2021 is a €3.5 billion stimulus package announced by the Government of Ireland on 1 June 2021 to achieve rapid job creation and economic growth after the COVID-19 pandemic. The plan sets out a new phase of supports, investment and policies for a new stage of economic recovery and renewal, with new measures for businesses and affected sectors, and details for existing emergency pandemic financial supports including the COVID-19 Restrictions Support Scheme, Employment Wage Subsidy Scheme and Pandemic Unemployment Payment, giving certainty to businesses and employees and for those who need it most.

Four pillars of the plan

The Economic Recovery Plan is broken down into four pillars:

1 Ensuring our public finances are sustainable for a lasting recovery
2 Helping people back into work by extending labour market supports and through intense activation and reskilling and upskilling opportunities, driven by Pathways to Work 2021–2025
3 Rebuilding Sustainable Enterprises through targeted supports and policies to make enterprises more resilient and productive
4 A Balanced and Inclusive Recovery through strategic investment in infrastructure and reforms that enhance our long-term capacity for growth, balanced regional development and by improving living standards

Helping people back to work – Reaching 2.5 million people in work by 2024.

Extension of supports

  • Employment Wage Subsidy Scheme (EWSS) and Pandemic Unemployment Payment (PUP) extended for the rest of 2021 with phased adjustments

Practical supports such as individual advice, CV preparation and work placements

  • Expanded Jobs Plus Scheme to 8,000 places
  • Workplace Experience Programme, 10,000 participants by 2022

Upskilling and reskilling

  • Accelerated availability of 50,000 extra education and training places
  • Investment of €114m in education and training through Solas Recovery Skills Programme
  • 10,000 additional apprenticeships per annum by 2025

Building sustainable businesses – Helping business to recover and embrace new opportunities.

Extension and enhancement

  • Extension and enhancement of the COVID-19 Restrictions Support Scheme (CRSS)
  • Extension of the Commercial Rates Waiver and Debt Warehousing Schemes
  • New Business Resumption Support Scheme
  • SME and Entrepreneurship Growth Plan – 2,000 additional SMEs to begin exporting by end 2025
  • IDA 2021-2024 Strategy – aims to win 800 total investments to support creation of 50,000 jobs

Support and planning for sectors that have been particularly impacted by the pandemic

  • Lower Tourism VAT rate of 9% extended to 1 September 2022
  • Live Performance Support Scheme (LPSS)
  • Music and Entertainment Business Assistance Scheme
  • New events sector support scheme
  • Fáilte Ireland initiatives including Business Continuity Scheme
  • Roadmap for Aviation Recovery

Building resilient, productive and innovative businesses for the future

  • Digital Transformation of Enterprise Fund
  • National Artificial Intelligence Strategy
  • Technological University Fund
  • National Grand Challenges Programme

Recovery for all – Building on the lessons of the pandemic.

Supporting a digital and green economy

  • €915 million of funding under the European Recovery and Resilience Facility
  • Retrofit Loan Scheme

Balanced regional development

  • Updated National Development Plan
  • Brexit Adjustment Reserve (over €1 billion)
  • Remote Working Strategy

Fair recovery

  • Social dialogue
  • Statutory sick pay
  • Wellbeing Framework
  • Just Transition

Key elements of the plan

  • A substantial extension of the Employment Wage Subsidy Scheme (EWSS), the Pandemic Unemployment Payment (PUP), and the COVID-19 Restrictions Support Scheme (CRSS), and considerable enhancement of both EWSS and CRSS
    • The Employment Wage Subsidy Scheme will be extended beyond 30 June until 31 December 2021
    • The Pandemic Unemployment Payment will be extended in full for existing claimants beyond 30 June to 7 September. The scheme will close to new applicants from 1 July in recognition that, at that stage, there should be no new job lay-offs that are directly attributable to public health restrictions
      • The current weekly rates of support will be gradually reduced over three phases by €50 increments. The first phase of rate changes will apply from 7 September provided progress on reopening continues. Two further phases of changes will take place over the following months, on 16 November and 8 February, if progress continues as expected
      • PUP claims for students will be extended until the start of the 2021/2022 college year (final payment on 7 September). In addition, €10 million in assistance will provide supports for the forthcoming academic year for students impacted by COVID-19
  • Complemented by a range of initiatives including extension of Commercial Rates Waiver, new additional Business Resumption Support Scheme, and extension of Tax Debt Warehousing Scheme
  • Continuing to provide supports for worst-affected sectors including aviation, tourism and events as they continue to reopen, including the extension of 9% VAT rate for tourism and hospitality sector, supports for live entertainment and events sector, and a roadmap for the aviation sector
    • A roadmap for the recovery path for the aviation sector is rooted in the reopening of international travel, supports for workers and sectoral specific supports
      • Non-essential travel can return from 19 July and for travel within the European Union area, Ireland will be operating the EU Digital COVID-19 Certificate
    • As part of Government's support for the tourism sector, the lower tourism and hospitality VAT rate of 9% will be extended to 1 September 2022, and Fáilte Ireland will continue its support initiatives including through its Business Continuity Scheme or equivalent schemes
  • Strategic investment that will drive the digital and green transition, as well as supporting social and economic recovery and job creation
  • Overarching ambition to exceed pre-crisis employment levels by reaching 2.5 million people in work by 2024
  • Help people back into work, and into new sustainable job opportunities through increased activation, and reskilling and upskilling opportunities
  • A pathway to a strong, resilient economy, aligned with the Government's green and digital ambitions
  • Learn lessons from the pandemic by building a balanced and inclusive recovery, which leverages new ways of working, and by improving labour market supports and living standards
  • Ensuring sustainable public finances for a lasting recovery

See also

References

  1. Ryan, Órla; Ní Aodha, Gráinne (1 June 2021). "Government announces €3.5 billion plan to get the economy through Covid". TheJournal.ie. Retrieved 1 June 2021.
  2. Horgan-Jones, Jack; Taylor, Cliff; Leahy, Pat (1 June 2021). "Economic recovery plan 'the opposite of austerity', says Taoiseach". The Irish Times. Retrieved 1 June 2021.
  3. "'Enormous damage to be undone' - recovery plan unveiled". RTÉ News and Current Affairs. 1 June 2021. Retrieved 1 June 2021.
  4. "Launch of the Economic Recovery Plan 2021". gov.ie. Department of the Taoiseach. 1 June 2021. Retrieved 1 June 2021.
  5. Ryan, Philip; Kelly Palenque, Brendan; O'Connell, Hugh (1 June 2021). "National Economic Plan: Property tax, PUP and metropolitan railway lines – everything we know". Irish Independent. Retrieved 1 June 2021.
  6. Blaney, Ferghal (1 June 2021). "VAT and grant boosts for businesses despite PUP and wage support cuts, Micheal Martin confirms". Irish Mirror. Retrieved 1 June 2021.
  7. "Launch of the Economic Recovery Plan 2021". merrionstreet.ie. 1 June 2021. Retrieved 1 June 2021.
  8. "Pillar 1: Ensuring Sustainable Public Finances". gov.ie. Department of the Taoiseach. 1 June 2021. Retrieved 1 June 2021.
  9. "Pillar 4: A Balanced and Inclusive Recovery". gov.ie. Department of the Taoiseach. 1 June 2021. Retrieved 1 June 2021.
  10. ^ "Economic Recovery Plan: Here are the Covid-19 supports in place as society reopens". TheJournal.ie, Government of Ireland. 1 June 2021. Retrieved 2 June 2021.
  11. ^ "Gov.ie – Economic Recovery Plan". gov.ie. Department of the Taoiseach. 1 June 2021. Retrieved 1 June 2021.
  12. ^ Moloney, Marita (1 June 2021). "Covid Ireland: 9 key points from the economic recovery plan and how it will affect your pocket". Irish Mirror. Retrieved 1 June 2021.
  13. ^ "Pillar 2: Helping People Back into Work". gov.ie. Department of the Taoiseach. 1 June 2021. Retrieved 1 June 2021.
  14. Ní Aodha, Gráinne; Ryan, Órla (1 June 2021). "From PUP changes to how to spend the EU billion - here's what's in the government's Covid stimulus plan". TheJournal.ie. Retrieved 1 June 2021.
  15. Stedman, Gill (1 June 2021). "At a glance: What's in the Economic Recovery Plan". RTÉ News and Current Affairs. Retrieved 1 June 2021.
  16. McConnell, Daniel (1 June 2021). "Taoiseach confirms plans to phase out PUP from September". Irish Examiner. Retrieved 1 June 2021.
  17. ^ "Pillar 3: Re-building Sustainable Enterprises". gov.ie. Department of the Taoiseach. 1 June 2021. Retrieved 1 June 2021.

External links

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See also
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