Businesses in Cork set out their priorities for Budget 2024
Cost of living, housing, and infrastructure are among the key concerns of Cork businesses. Picture: Dan Linehan
Businesses in Cork say the cost of living crisis and housing remain their top concerns to be addressed in the Budget this year.
According to the Chamber's latest Economic Trends trends survey, 55% of respondents reported they want to see the cost of living measures as the number one priority in Budget 2024 with a similar number (49%) reporting that supply-side housing stimulus should be a focal point in the upcoming budget and 34% called for the budget surplus to be used to finance it.
Infrastructural investment, business competitiveness, tax reform, and climate action investment were the next items firms want to see prioritised.
In relation to housing, businesses said targeted and timebound VAT reduction for construction activity came out as the top priority action that government should undertake to address the supply of housing, followed by accelerated capital allowances for apartment development and increasing the income threshold for cost rental.
Investment in large-scale public transport projects and investment in the supporting infrastructure for renewable energy were identified as the most desired measures for government to undertake to combat climate action.
Despite the pre-Budget concerns, 97% of Cork firms expressed confidence in their own business with 71% expressing confidence in the overall economy.
While businesses reported difficulties filling vacant roles, more than half of companies (55%) plan to increase their headcounts over the next 12 months. A shortage of the required skill remains the most significant barrier to filling vacancies followed by housing concerns.
“It is positive to see that business confidence remains high at 97%," Cork Chamber President Ronan Murray said. "This confidence has been evident through the quarter with a wealth of investment and growth plans announced by businesses across the region. Budget 2024 will be an important moment for government to match that optimism and willingness to invest with constructive and strategic financing for the key economic enablers."
“Despite inflation and changing consumer spending, businesses are continuing to expand and have sustained strong hiring numbers this quarter with 41% reporting an increase to employee numbers and only 7% having decreased their staff numbers," said Auriol Kelly, Business Banking Manager at Permanent TSB who sponsor the survey.
"As businesses continue to adapt to a changing environment, Permanent TSB remains committed to supporting the business community."
Mr Murray said previous housing measures announced by Government are positive in terms of addressing the housing shortage. "It is important to retain this focus for Budget 2024 to help deliver increased affordable, sustainable and high-density housing. The supply of housing and the associated infrastructural supports, such as public transport, are key for Cork businesses."
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