Budget 2023

On September 27th, Government announced the details of Budget 2023. The following is a summary of some of the key measures that will impact tourism and hospitality businesses:

Temporary Business Energy Support Scheme (TBESS)

  • Designed to assist small to medium enterprises over the winter months.
  • Open to businesses that carry on a ‘Case 1 trade’, i.e., trading which is most bona fide hospitality businesses liable to corporation tax at 12.5%.
  • Self-assessed and administered by the Revenue Commissioners.
  • Energy costs must be up by 50% or more relative to 2021 (by comparing the average unit price for the relevant bill period).
  • It will pay for 40% of the increase in gas and electricity that businesses are facing.
  • It is capped at a maximum of €10,000 per month per business.
  • Overall cap will also apply to stay within State aid rules


  • Tourism VAT’ rate will return to 13.5% as planned at the end of February 2023.

€15 million for Fáilte Ireland initiatives (including support for domestic festivals and marketing; Digital Transformation; US College Football strategy and Sustainable Tourism actions)

State-backed Ukraine Credit Guarantee Scheme

  • To assist the wider business sector with liquidity and to invest in energy efficiency, a €1.2 billion has been announced. This will provide low-cost working capital to SMEs, primary producers and small mid-caps (businesses with fewer than 500 employees) of up to €1 million, on a six-year term, with no collateral required for loans up to €250,000.

Growth and Sustainability Loan Scheme

  • This new loan scheme will make up to €500 million in low-cost investment loans of up to 10 years available to SMEs, including farmers and fishers and small mid-caps, with no collateral required for loans up to €500,000. A minimum of 30% of the lending volume will be targeted towards Environmental Sustainability purposes.

Small Benefits Exemption for Employers

  • It allows an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC.
  • Ceiling doubled from €500 to €1,000.
  • Two payments allowed in a given year (previously only one payment allowed).

Cost of late-night licence halved from €110 to €55

Full details of the Budget 2023 announcement can be found here.