British Irish Chamber calls for €1bn Brexit Response Fund in Budget 2020

British Irish Chamber calls for €1bn Brexit Response Fund in Budget 2020
John McGrane, Director-General of the British Irish Chamber of Commerce.

The British Irish Chamber of Commerce has called on the Government to set up a €1bn Brexit Response Fund in Budget 2020.

The Chamber believes larger than expected corporate tax revenue should be allocated to support industries most impacted by a 'no-deal' scenario. 

In a pre-budget submission it also suggests greater investment in higher education and research links between the UK and Ireland. 

The submission calls for a number of policy measures to "protect the Irish economy" from a no-deal Brexit.

These include:

  • Establishing a €1bn Brexit Response Fund to help Irish businesses withstand a ‘Brexit shock’;
  • Increasing the R&D tax credit to 30% to incentivise innovation in the economy;
  • Reducing the headline Capital Gains Tax rate to pre-crisis levels;
  • Constructing an innovation campus in Dublin surrounded by an innovation district to enhance Ireland’s reputation as a top-tier location for investment;
  • Developing a new UK-Ireland bilateral research stream to ensure close collaboration on research and innovation post-Brexit;
  • Establishing of a North-South Academic Corridor to foster collaboration on areas of mutual strength between universities across the island of Ireland.

"Budget 2020 will be one of the most consequential budgets in the history of the State," said John McGrane, Director-General of the British Irish Chamber of Commerce.

"Ireland is facing the real and growing prospect of a ‘no-deal’ Brexit outcome that will place untold obstructions on UK-Ireland trade. A

"It this critical time, we have to balance short-term uncertainty with long-term imperatives.

"In the shadow of ‘no-deal’, our members are requesting the Government to do more to reassure businesses as they prepare for all eventualities.

"By redirecting €1bn from the larger than expected corporate tax intake into a Brexit Response Fund, Government can shore-up indigenous businesses which are most at risk from a disorderly Brexit.

"From the agri-food sector to freight and haulage, SMEs across Ireland will need urgent protection."

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