The British Irish Chamber of Commerce said it welcomes the creation of the €3.4 billion fund to combat the twin threats of Brexit and the continuing impact of Covid-19.
In a statement, the Chamber said it has long advocated for the creation of a fund to protect sectors most exposed to the consequences of Brexit and a resurgence of the pandemic.
Paul Lynam, Director of Policy at the British Irish Chamber of Commerce, said the approach taken today is necessary so that businesses can be protected from the worst impacts of Brexit while also ensuring the foundations for future prosperity are built.
Mr Lynam said it is crucial that businesses benefit from this kind of support irrespective of the outcome of the current trade talks.
"Businesses have moved to activate their "no-deal" contingency plans and face additional costs in trading with the UK. The decision to increase capital expenditure is the correct one and shows that the Government has taken a proactive approach in stimulating shovel ready job intensive sectors," he added.
The British Irish Chamber of Commerce also welcomed the VAT tax reduction for the restaurant, hotel and hospitality sectors.
It said that while it had advocated for a temporary reduction to 0% for the duration of the Covid-19 crisis and then permanently to 9% once the recovery has taken hold, it welcomed the reduction to 9% as a respite for a much-damaged sector to get businesses through the winter.
But the Chamber also noted that the budget did not specify supports to offset the "disproportionate" impact of Brexit on the agri-food sector.
It said the sector may suffer disproportionately from a hard Brexit, adding that more resources, which will be readily available from the EU Recovery Fund, are needed to protect businesses in the agri-food industry.
The American Chamber of Commerce Ireland said it welcomed no additional tax on job creation through changes to income tax bands or credits in Budget 2021.
It also welcomed the reaffirmation of Ireland's 12.5% corporation tax rate and noted that an update will be published to Ireland's Corporate Tax Roadmap with further steps for reform to be outlined in the context of the OECD BEPS project.
Mark Redmond said that he believes Budget 2021 will ensure Ireland remains globally competitive.
But he added that the decision on amending legislation to provide that intangible assets acquired from midnight tonight will be within the scope of balancing charge rules.
The American Chamber said he is consulting with members on the implications of this change.
