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Economic Recovery Plan 2021

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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.[1][2][3] 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.[4][5][6]

Four pillars of the plan

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The Economic Recovery Plan is broken down into four pillars:[7]

1 Ensuring our public finances are sustainable for a lasting recovery[8]
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[9]

Helping people back to work – Reaching 2.5 million people in work by 2024.[10]

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.[10]

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.[10]

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

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  • 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[11][12]
    • The Employment Wage Subsidy Scheme will be extended beyond 30 June until 31 December 2021[13][14]
    • 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[13][15]
      • 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[13][16]
      • 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[13]
  • 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[11][12]
  • 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[11][12]
    • 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[17]
      • 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[17]
    • 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[17]
  • Strategic investment that will drive the digital and green transition, as well as supporting social and economic recovery and job creation[11][12]
  • Overarching ambition to exceed pre-crisis employment levels by reaching 2.5 million people in work by 2024[11][12]
  • Help people back into work, and into new sustainable job opportunities through increased activation, and reskilling and upskilling opportunities[11][12]
  • A pathway to a strong, resilient economy, aligned with the Government's green and digital ambitions[11][12]
  • 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[11][12]
  • Ensuring sustainable public finances for a lasting recovery[11][12]

See also

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References

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  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. ^ a b c "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. ^ a b c d e f g h i "Gov.ie – Economic Recovery Plan". gov.ie. Department of the Taoiseach. 1 June 2021. Retrieved 1 June 2021.
  12. ^ a b c d e f g h i 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. ^ a b c d "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. ^ a b c "Pillar 3: Re-building Sustainable Enterprises". gov.ie. Department of the Taoiseach. 1 June 2021. Retrieved 1 June 2021.
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