Accountants: Budget provides 'little stimulus' to growth

The Institute of Certified Public Accountants in Ireland has said that today's Budget is "a tax-gathering exercise with little stimulus".

Eamonn Siggins, Chief Executive of the Institute of Certified Public Accountants in Ireland said: "Spending cuts and an increased tax take in themselves will not be sufficient to increase our GDP.

"We need to do more to protect key incentives to generating enterprise. There is no evidence here of a solid strategy to improve our international competitiveness, boost consumer confidence, grow indigenous business or create jobs.

"This budget was a tax-gathering exercise with little stimulus.

"Small and medium enterprises are in a critical state due to severe cash flow problems and the inability to source working capital. This is an immediate problem which is leading to weekly job loss increases.

"Regrettably, there is nothing in this budget to support entrepreneurs and existing businesses that are experiencing cash flow difficulties, compounded further by increasing energy and local authority costs."

Mr Siggins welcomed the planned introduction of Business Investment Targeting Employment Scheme (BITES).

However, he said: "We do not believe this goes far enough to address the issue of business funding. The Budget may well have been comprehensive in introducing measures to address the fiscal deficit, but employment in the micro business sector will remain under threat."

Mr Siggins also welcomed the commitment to retain the corporate tax rate at 12.5%