Over the next five years, the Government is expanding HMRC’s capacity with the objective of closing the tax gap and bringing in an additional £6.5 billion per year by 2029/30. A range of announcements featured in this area including anti-avoidance legislation, and a commitment to overhaul HMRC’s IT systems and improve debt management by ensuring tax debt is settled faster. However, no information was provided on any specific additional investment to improve HMRC’s phone and post services. And finally, the expected consultation on e-invoicing will not be launched until early 2025. Investment in HMRC The HMRC settlement provides total funding of £6.7 billion in 2025/26. According to the Budget publications, the increased funding, together with the Exchequer Secretary to the Treasury becoming Chair of HMRC’s Board, marks a step change in the Government’s efforts to “close the tax gap, improve service levels, and modernise and reform HMRC”. Plans also continue to transform HMRC into a “digital‑first organisation”, with a Digital Transformation Roadmap to be published in Spring 2025. 180 new counter-fraud staff will be used to target increasing HMRC’s capability to better tackle fraud and error in child benefit and tax-free childcare via an expected gross saving of £95 million by 2029/30. As announced in July, £1.4 billion will be invested over the next five years to recruit an additional 5,000 HMRC compliance staff in order to raise £2.7 billion per year in additional revenue by 2029/30. The first 200 are set to join this month. £262 million will be invested over the same period to fund 1,800 HMRC debt management staff, with the aim of raising £2 billion per year in additional revenue by 2029/30. £154 million will be invested to modernise HMRC’s debt management case system and a £12 million investment will be used to acquire further credit reference agency data to enable HMRC to better target their debt collection activities. £16 million is to be invested to modernise HMRC’s app to allow income tax self-assessment taxpayers to make voluntary advance payments in instalments. The Government also confirmed that the use of payroll software to report and pay tax on benefits in kind (payrolling of BIKs) will become mandatory as previously announced. This will take place in phases, from April 2026 and will apply to income tax and Class 1A National Insurance Contributions. Tax agents £36 million is being invested in order to modernise HMRC’s tax adviser registration services from April 2026 and tax advisers who interact with HMRC on behalf of clients will need to be registered with HMRC. This will be legislated for in a future Finance Bill. From 6 April 2025, tax advisers will be required to provide an advanced electronic signature when making specified income tax repayment claims on behalf of clients. A consultation will also be published in early 2025 on options to enhance HMRC’s powers and sanctions to take swifter and stronger action against tax advisers who facilitate non-compliance. Umbrella company market To tackle “the significant levels of tax avoidance and fraud in the umbrella company market”, recruitment agencies will become responsible for accounting for PAYE on payments made to workers that are supplied via umbrella companies. Where there is no agency, this responsibility will fall to the end client business. This will take effect from April 2026. A policy paper was published alongside the Budget providing further information on this measure. Late payment interest rates on unpaid tax From 6 April 2025, the late payment interest rate charged by HMRC on unpaid tax liabilities will increase by 1.5 percent points so that it will be set at 4 percent above base rate. Should the current Bank of England base rate remain unchanged between now and then, the interest rate will therefore increase from 7.25 percent to 8.75 percent. Digital reporting for Individual Savings Account managers This will be mandatory from 6 April 2027; hence draft legislation will be published for a technical consultation in 2025. Car ownership schemes Draft legislation will be published to deal with loopholes in car ownership arrangements. This aims to target arrangements through which an employer/third party sells a car to an employee, often via a loan with no repayment terms and negligible interest, then buys it back after a short period. This will take effect from 6 April 2026. Charity compliance Legislation will be introduced to ensure that only the intended tax relief is given to charities. These changes will take effect from April 2026 to give charities time to adjust to the new rules. Liquidations of limited liability partnerships The way capital gains are taxed when a limited liability partnership is liquidated, and assets are disposed of to a contributing member or person connected to them, changed from 30 October 2024 and will be legislated for in Finance Bill 2024/25. Close company loans to participators The Government will ensure that shareholders cannot extract funds untaxed from close companies by legislating to remove opportunities to side-step the anti-avoidance rules attached to the loans to participators regime. This change applies from 30 October 2024. Reducing tax-free overseas transfers of tax relieved UK pensions The Government removed the exclusion from the overseas transfer charge for transfers to qualifying recognised overseas pension schemes in the European Economic Area or Gibraltar from 30 October 2024 to address the risk of individuals receiving double tax-free allowances. Rogue company directors Collaboration between HMRC, Companies House, and the Insolvency Service will be increased to tackle those using contrived corporate insolvencies and dissolutions, often referred to as “phoenixism”, to evade tax. Deterring tax fraud and rewards for informants HMRC’s counter-fraud capability will be expanded to address “high value and high harm tax” and its scheme for rewarding informants will be strengthened in order to encourage reporting of high value tax fraud and avoidance. Tackling promoters of marketed tax avoidance A consultation will be published in early 2025 on a package of measures to tackle promoters of marketed tax avoidance. Offshore tax compliance The Government committed additional resources to scale up compliance activity in order to tackle serious offshore non-compliance such as fraud by wealthy taxpayers and intermediaries, corporates they control and other connected entities. Simplification of taxation of offshore interest A consultation has been launched to tackle challenges arising from the mismatch of information on offshore interest being provided on a calendar year basis rather than a UK tax year basis. The consultation is seeking views on options to address this mismatch, including changes to the rules so that individuals are taxed on the non-UK interest arising in the year ended 31 December that ends in the tax year. Cryptoasset Reporting Framework and amendments to the Common Reporting Standard A summary of responses to the consultation on the implementation of the Cryptoasset Reporting Framework (CARF) and amendments to Common Reporting Standard was published. This includes a decision to extend the CARF’s reporting requirements to UK users. This will be legislated for in Finance Bill 2024/25, although draft regulations to implement the revised rules have already been published for consultation. Employee ownership trusts and employee benefit trusts A package of reforms to the taxation of employee ownership trusts and employee benefit trusts were introduced to prevent opportunities for abuse and ensure that the regimes remain focused on encouraging employee ownership and rewarding employees. These changes took effect from 30 October 2024. Hidden economy: expanding tax conditionality to new sectors and consultation on HMRC correction powers A consultation has been published on whether to make the renewal of further public sector licences conditional on applicants demonstrating they are appropriately registered for tax. The Government has also published a consultation on reforming HMRC’s correction powers, exploring changes to HMRC’s existing powers and processes, and a potential new power to require taxpayers to correct mistakes themselves. A response to the call for evidence on HMRC powers, penalties, and safeguards has also been published. Making better use of third-party data The Government will publish a consultation in early 2025 on modernising how HMRC acquires and uses third-party data. Requirements for European Economic Area overseas pension schemes The Government will bring in line the conditions of overseas pension schemes (OPS) and recognised overseas pension schemes (ROPS) established in the EEA with OPS and ROPS established in the rest of the world from 6 April 2025. UK resident pension scheme administrators The Government will require scheme administrators of registered pension schemes to be UK resident from 6 April 2026.  

The October Exchequer figures show that tax revenues of €76.3 billion were €9.9 billion, or 14.9 percent ahead of the same period last year. More than half of the increase was driven by corporation tax receipts of €21.4 billion, which are €5.6 billion, or 35.9 percent, ahead of last year. October corporation tax receipts include one-off receipts arising from the ruling of the Court of Justice of the European Union (CJEU) in the Apple State-aid case last September.  Reflecting the continued strength in the labour market, income tax receipts for the year-to-October of €27.6 billion are up €1.9 billion, or 7.3 percent, ahead of the same period last year. On a cumulative basis, VAT receipts of €18.3 billion are up €1.3 billion, or 7.7 per cent, on the same period last year reflecting solid consumer spending growth.  An Exchequer surplus of €1.3 billion was recorded to the end of October. This was an improvement of €2.1 billion on the same period last year.  In addition, the Parliamentary Budget Office has released a new data visualisation, Fiscal Monitor October 2024. This visualisation provides a high level analysis of spending and tax revenue trends to the end of October 2024.  Commenting on the figures, the Minister for Finance Jack Chambers said:  “The October tax performance shows steady growth across most revenue streams, with the exception of corporation tax, which is distorted by the receipt of the first tranche of receipts arising from the CJEU ruling of September 10th.  As I said on Budget Day, it is essential that we do not use this once-off revenue to fund day-to-day spending commitments. The Departments of Finance and Public Expenditure, NDP Delivery and Reform, are progressing the development of the framework for the allocation of windfall revenues, which is expected to be brought to Government in the first quarter of next year.  More generally, we must continue to pursue a budgetary strategy that is carefully balanced between addressing the pressures of today and ensuring fiscal sustainability over the longer term. Last month, Government made the first transfer from the Exchequer to the new Future Ireland Fund, setting aside a portion of the windfall tax receipts to help us prepare for future challenges. By the end of next year, there will be some €16 billion in the two new investment funds.” 

A range of measures featured in this area including the announcement that the 100 percent first year allowance (FYA) for qualifying expenditure on certain green assets, including plant or machinery for electric vehicle charge points, will be extended, a recommendation of the Institute in its pre-budget submission. Green FYA The Government will extend for a further year the 100 percent FYA for qualifying expenditure on zero-emission cars and the 100 percent FYA for qualifying expenditure on plant or machinery for electric vehicle charge points to 31 March 2026 for corporation tax and 5 April 2026 for income tax. Leased assets and full expensing Extending full expensing to assets bought for leasing or hiring will be explored when fiscal conditions allow. What qualifies for capital allowances HMRC will continue to work with stakeholders to improve and clarify guidance on areas of uncertainty within the capital allowances system. Tax treatment of predevelopment costs A consultation will be launched in the coming months that explores the tax treatment of predevelopment costs.

Revenue has advised us of upcoming changes to its direct debit payment facility. Revenue intends to cease offering a fixed direct debit payment option over the coming months and will move to variable direct debits. The main difference is that Revenue will request the exact value of the monthly liability due from a taxpayer’s bank account, rather than a fixed amount each month, ensuring that the taxpayer pays the right tax at the right time and will not be at risk of interest applying for underpayments of tax.   It is intended to commence the direct debit modernisation with employer income tax/PRSI/USC/LPT as it is already used by the majority of employers to pay their monthly employer liabilities. The last collection under the current fixed direct debit mandate will be in January 2025 for 2024.  Taxpayers must set up a new variable direct debit mandate by 31 January 2025, for 2025. Any fixed direct debit mandates not updated by this deadline will be cancelled automatically by Revenue and any taxpayer who has not set up a variable direct debit mandate will be at risk of incurring a tax debt and interest.  Revenue intends to issue a notice to taxpayers from the week of the 18 November 2024 to inform them of the change and the action required to update their direct debit mandate for 2025.   Revenue has advised that the fastest and most secure way for a taxpayer to provide a new mandate is online, as follows:  i.     The taxpayer must cancel their existing fixed direct debit for employers (PAYE) tax by logging in to ROS, selecting the “My Services” page, clicking on “Manage Bank Accounts” and following the steps provided to select “SEPA Direct Debit –Cancel.”; then ii.     The taxpayer must set up a new variable direct debit mandate by following the previous steps to SEPA Direct Debit and select “Create a Variable Direct Debit Instruction”. It is expected that the transition to variable direct debit for VAT and income tax is likely to begin from mid-2025.  

The Government will engage with stakeholders over the coming months to understand their views on where the tax policy making process works well, and what could be improved. In its pre-budget submission, the Institute highlighted the need to examine the current tax policy making process. The Government is also committed to a single major fiscal event per year. According to the Budget publications, the Government will simplify the tax system and will take this forward as part of its three strategic priorities for HMRC. It plans to engage with stakeholders before introducing a set of measures to simplify tax administration and improve taxpayer experience in Spring 2025. This will focus on reducing burdens on small businesses. The Government will meet stakeholders to understand the priorities for administration and simplification, ensuring that this work is driven by the views of taxpayers.

As previously announced VAT on private school fees will proceed as planned from 1 January 2025. On the duty side, the expected increase in fuel duty has been shelved, as recommended by the Institute in its pre-budget submission. VAT on private school fees From 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 percent This will also apply to boarding services provided by private schools. The Government has now published a response to its recent technical consultation on this policy. To protect pupils with special educational needs that can only be met in a private school, local authorities and devolved Government’s that fund these places will be compensated for the VAT they are charged on those pupils’ fees. VAT treatment of private hire vehicles The Government is considering the responses to the consultation on the VAT treatment of private hire vehicle services, and the impact of a recent Court of Appeal judgment and will respond to the consultation in due course. Fuel duty The Government is freezing fuel duty and extending the temporary 5p cut for one year, at a cost of £3 billion. This will save the average car driver £59 in 2025/26. Alcohol duty The Government recognises the economic and cultural importance of British pubs and is committed to supporting smaller brewers. The Budget therefore reduced duty on qualifying draught products from 1 February 2025, which represent approximately 60 percent of alcoholic drinks sold in pubs, cutting duty on an average strength pint by a penny. However, alcohol duty on non-draught products will increase in line with Retail Price Index (RPI) inflation from the same date. The current temporary wine easement will end as planned on 1 February 2025. To support small producers, the Government will make the small producer relief more valuable and will also consult on ways to encourage small brewers to retain and expand their access to UK pubs, maximising drinkers’ choice and local economies, including through provisions to enable more ‘guest beers’. The Government also announced the end of mandatory duty stamps for spirits and will consult with industry to establish how it can better support the delivery of the spirit drinks verification scheme, which allows spirit producers to verify the geographic origin of their products. This will include the Government making an investment of up to £5 million “to support and look to reduce bureaucracy for existing and prospective producers who may wish to join”. Air passenger duty To ensure Air Passenger Duty (APD) revenues remain sustainable, all APD rates will increase in 2026/27. This equates to £1 more for those taking domestic flights in economy class, £2 more for those flying to short-haul destinations in economy class, £12 for long-haul destinations, and relatively more for premium economy and business class passengers. The higher rate, which currently applies to larger private jets, will rise by a further 50 percent in 2026/27. From 2027/28 onwards, all rates will be uprated by forecast RPI and rounded to the nearest penny. The Government is also consulting on extending the scope of the APD higher rate to capture all passengers travelling in private jets already within the APD regime. Vehicle excise duty To help drive the transition to electric vehicles (EVs), the Government is strengthening incentives to purchase EVs by widening the differentials in vehicle excise duty (VED) first year rates between EVs and hybrids/internal combustion engine cars. The Government recognises the disproportionate impact of the current VED expensive car supplement threshold for those purchasing zero emission cars and will consider raising the threshold for zero emission cars only at a future fiscal event, to make it easier to buy electric cars. Heavy goods vehicle (HGV) VED rates will increase in line with RPI from 1 April 2025 as will the HGV levy. Smoking duty The tobacco duty escalator of RPI +2 percent is being retained for the remainder of this Parliament and will increase duty by a further 10 percent on hand-rolling tobacco this year. These changes apply from 6pm on 30 October 2024. A new vaping products duty will be introduced from 1 October 2026 at a flat rate of £2.20 per 10ml vaping liquid, accompanied by an equivalent further one-off increase in tobacco duty to maintain the financial incentive to switch from tobacco to vaping. Soft drinks levy The soft drinks levy will increase so that it maintains the incentive for soft drinks manufacturers to reduce their sugar content. Rates will be announced in the preceding autumn fiscal event. Both the lower and higher rates of the Levy will increase each year over the next five years to reflect the 27 percent Consumer Price Index (CPI) increase between 2018 and 2024, in addition to an increase in line with the CPI each year from 1 April 2025. The Government will also review the current sugar thresholds and the exemption for milk-based drinks. Gaming duty The gross gaming yield bandings for gaming duty will be frozen from 1 April 2025 until 31 March 2026. The Government will also consult in 2025 on proposals to bring remote gambling (meaning gambling offered over the internet, telephone, TV and radio) into a single tax, rather than taxing it through a three-tax structure. This will aim to simplify, future-proof and close loopholes in the system.  

The Department of Finance has published the minutes of the meeting of the Business Tax Stakeholder Forum which took place on 18 October. The Institute, under the auspices of the CCAB-I, was in attendance at this meeting. The agenda included an overview of Finance Bill 2024, the public consultation on the tax treatment of interest in Ireland, and the domestic implementation of Pillar Two. This newly established forum includes representatives from across the business tax spectrum and is a key opportunity for stakeholders to engage with the Department of Finance.

Last week, Finance Bill 2024 (“the Bill”) concluded its expeditious journey through the Oireachtas as the Dail and Seanad finalised the various amendments arising from Committee stage. The following amendments will be of particular interest to members: The new rules for Retirement Relief, which are essentially a deferral of CGT becoming a permanent exemption if the qualifying assets are held for at least 12 years, now no longer require the child to make a claim at the end of the 12-year period; and The new 'active farmer' test introduced for CAT Agricultural Relief has been delayed and will be subject to a Ministerial Commencement Order, pending further consideration. There were further amendments brought through at Committee stage including: CGT Angel Investor Relief was amended clarifying the period for which the certificate of commercial innovation will remain valid. The zero-rate of VAT was formally extended to milk alternatives (e.g., oat milk, almond milk, etc.). In relation to Residential Zoned Land Tax, the legislation now refers to the functions of Limerick City and Country Council in relation to the tax. The Institute, under the auspices of the CCAB-I, has engaged with Revenue and the Department of Finance throughout the process.

A range of other measures also featured, included increases in certain stamp duty land tax rates from 31 October 2024. Stamp duty land tax (SDLT) The SDLT surcharge on acquisition of an additional dwelling increased from 3 percent to 5 percent from 31 October 2024. The 15 percent rate of SDLT that is charged on the purchase of dwellings costing more than £500,000 by corporate bodies increased by 2 percentage points to 17 percent from the same date. Those who exchanged contracts prior to 31 October 2024 are not affected by these rate increases. Van fuel and benefit charge and car fuel benefit Both of these will increase by the CPI from 6 April 2025. Plastic packaging tax To incentivise businesses to use recycled instead of new plastic in packaging, the Plastic Packaging Tax (PPT) rate for 2025/26 will increase in line with CPI inflation. To support the use of and investment in advanced chemical recycling technologies, businesses will be permitted to use a mass balance approach to evidence recycled content in chemically recycled plastic for the PPT. Landfill tax rates The previously announced adjustment to landfill tax rates from 1 April 2025, which maintains the incentive to manage waste more sustainably, will be implemented in order to maintain the real-terms value of landfill tax rates. To ensure they reflect up-to-date market and economic conditions, the Government will announce future landfill tax rates at the fiscal event immediately before, so that those applicable from 1 April 2026 will be announced at Budget 2025. Land remediation relief A consultation will be launched in Spring 2025 to review the effectiveness of land remediation relief and will consider whether the relief is still meeting its objectives and is good value for money. Rollover of 2021 business tariff suspensions Following feedback from businesses, the Government will maintain tariff-free imports to avoid unnecessary costs for UK businesses. This measure will extend, until June 2026, tariff suspensions on goods ranging from aluminium frames used by UK bicycle manufacturers to ingredients used by UK food producers. Alternative finance tax rules  Alternative finance tax rules will be amended to put certain tax consequences of alternative and conventional financing arrangements on a level playing field. This follows a consultation on tax simplification for alternative finance which the previous Government published a summary of responses to earlier in 2024. The changes apply UK-wide from 30 October 2024 and will be legislated for in Finance Bill 2024/25. Annual Tax on Enveloped Dwellings (ATED) The annual chargeable amounts for the ATED will increase by the September 2024 CPI figure of 1.7 percent in 2025/2026. This will be implemented via a Treasury Order. Private intermittent securities and capital exchange system - stamp taxes exemption The Government is committed to delivering the private intermittent securities and capital exchange system (PISCES), a new innovative market for trading private company shares. In line with that commitment, the Government announced that PISCES transactions will be exempt from Stamp Duty and Stamp Duty Reserve Tax. This exemption will be introduced via a similar timeline to the legislation which will establish the PISCES regulatory framework. Energy profits levy From 1 November 2024, the Energy Profits Levy (EPL) increased by 3 percentage points to 38 percent, the investment allowance was abolished, and the rate of the decarbonisation allowance was set at 66 percent, so that its cash value is maintained. To provide certainty and to support a stable energy transition, the Government will make no additional changes to tax relief available within the EPL regime and the levy will end on 31 March 2030. The Government will legislate for these measures in Finance Bill 2024/25. To support long-term stability and predictability in the oil and gas fiscal regime, the Government also plans to publish a consultation in early 2025 on how the taxation of oil and gas profits will respond to price shocks after the EPL ends. It will also continue to have regular engagement with the sector to understand the evolving context of oil and gas investment, supported by bi-annual fiscal forums. Relief for payments made into a carbon capture usage and storage decommissioning fund The Government will legislate in Finance Bill 2024/25 to provide relief for payments oil and gas companies make into decommissioning funds in relation to assets sold for use in carbon capture usage and storage, maintaining the tax treatment had these assets instead been decommissioned. This legislation will also remove receipts from the sale of these assets from the scope of the EPL. Consultation on scope 3 emissions The Government is consulting on new environmental guidance for assessing end use emissions related to oil and gas projects. This consultation seeks to provide stability for the oil and gas industry, support investment, protect jobs and ensure a fair, orderly and prosperous transition in the North Sea in line with climate and legal obligations. Climate change levy 2026/27  The main rates of the climate change levy (CCL) for gas, electricity, and solid fuels will increase in line with the Retail Price Index in 2026/27. The main rate for liquefied petroleum gas will continue to be frozen and the reduced rates of the CCL will remain at an unchanged fixed percentage of the main rates. Carbon price support 2026/27  Carbon price support rates in Great Britain will remain at a level equivalent to £18 per tonne of CO2 in 2026/27. Advance tax certainty for major projects A consultation will be launched in Spring 2025 to develop a new process that will give investors in major projects increased tax certainty in advance.  

The extended phoneline hours this week for the ROS Technical Helpdesk, the Business Taxes (Income Tax only) phoneline and the Collector General’s Division (including ROS Payment Support) to support filers of ROS Form 11 and IT38 have been published. The phonelines will be open until 8pm from Monday to Wednesday this week. The ROS Technical Helpdesk and the Business Taxes (Income Tax only) phonelines will remain open until midnight on Thursday 14 November 2024, with the Collector General’s Division phoneline open until 8pm.  

Chartered Accountants Ulster Society has adopted Action Cancer as its charity partner for the Society's largest event of the year, the Christmas Charity Lunch.  The event will take place on 6th December at the Europa Hotel, Belfast with over 500 Chartered Accountants and guests attending and is expected to raise thousands of pounds for Action Cancer, as well as collecting hundreds of toys and vouchers for the Salvation Army and St. Vincent de Paul Christmas Appeal. Chairperson of Chartered Accountants Ulster Society, Gillian Sadlier said: “We are delighted to support Action Cancer which does so much great work throughout Northern Ireland, engaging with 20,000 people through its services each year. We hope that the money raised by our members at our Charity Lunch can make a real difference to families right across Northern Ireland.” Gareth Kirk, Chief Executive of Action Cancer said: “We are thrilled to have been selected by Chartered Accountants Ulster Society as the beneficiary charity for their 2024 Christmas Charity Lunch.  As a local cancer charity, Action Cancer is totally reliant on the financial generosity and support from local people and businesses, without such support we simply could not deliver our life saving breast and skin cancer detection services or provide a range of critical therapeutic interventions for people impacted by cancer.”  

Ireland’s economic future hinges on sustaining FDI, reforming regulations and tackling infrastructure issues to secure continued growth. Brendan Murphy explains why “It’s FDI, stupid” to paraphrase a 1990s US election slogan. We are a relatively small country – we need foreign direct investment to keep flowing in whether it is from the US or other parts of the world, including China. Over 80 percent of our corporation tax receipts and over 50 percent of our payroll tax receipts are generated by these companies. That money benefits all of us – consumers, savers and workers. We must not lose the golden goose.  This will require a long hard look at our infrastructure challenges in the coming decades, including some of the well-documented planning restrictions that can frustrate international businesses planning to set up in Ireland. The recent Government Budget missed an opportunity to champion Ireland’s businesses and entrepreneurs, featuring very few improvements to capital gains tax rules to encourage either. The cost of establishing and running a business continues to spiral. We would strongly support calls for improvements to entrepreneur relief to reward business owners and an easy-to-use share-based remuneration scheme that would allow those businesses to retain and reward key talent. Budget 2025 referred to four major issues that could make a real difference: share-based remuneration, the R&D tax credit, interest deductibility and the tax climate for the funds sector. In all four cases, however, the Government opted only to reference new and ongoing reviews rather than introduce any new tax policies. We think these should be top priorities for any incoming government to show some real tangible decisions from these reviews. Airport cap The airport cap has highlighted a key issue with planning laws and regulations in Ireland. This 17-year-old rule was introduced when Terminal 2 was built during a very different era. With a growing population and improvements to airport infrastructure, this cap should have been lifted years ago. We understand the need to manage this from an environmental perspective, but there is also a need to be mindful of the business travel that is crucial to maintaining our FDI levels and ensuring we support our hospitality sector, which felt forgotten and overlooked in the recent Budget.  We need to boost our tourist and investor numbers – not potentially put them off with higher air fares and fewer flights. Housing deficit There is no doubt housing will be a key battleground during this election and a key focus for the new government of whatever political makeup. In the recent Budget, the government outlined a roadmap for how current and future considerations from bank share sales will be allocated, emphasising a strong commitment to infrastructure spending. This investment is critical for achieving Ireland’s ambitious housing targets, with all agencies and commentators signalling that 60,000 new housing units will need to be completed annually to address the chronic undersupply. Despite these good intentions, however, planning delays and higher building costs continue to be significant constraints to meeting these targets. Some builders are unable to commence building unless they know they can deliver houses and apartments people can afford to buy. In addition to the generous budget allocations, planning regulations need to be closely examined and overhauled. Tangible policies over reviews To maintain Ireland’s status as an attractive FDI destination, decisive action is required. Infrastructure challenges, regulatory reform and thoughtful incentives for both entrepreneurs and international companies must be prioritised by any incoming government. Ireland’s economic future relies on supporting FDI, addressing the housing crisis and creating a business-friendly environment. If we are serious about growth, it’s time to replace reviews with real policy changes that meet the needs of today’s global economy. Brendan Murphy is Head of Tax at Baker Tilly Ireland