Stay and Spend Scheme ‘here to stay,’ say ministers TheJournal.ie

The GOVERNMENT’s STAY and Spend program is here to stay, according to Public Expenditure Minister Michael McGrath.

During yesterday’s Budget announcement, no adjustment to the scheme was mentioned despite criticism in recent days that it has become redundant after the entire country moved to Level 3 restrictions, advising people to stay in your own county.

Talking to TheJournal.ie yesterday, McGrath said the scheme “will remain as it is for now”, stating that it is “a very new scheme.”

“We did not anticipate when it was announced that it would coincide with the imposition of public health restrictions,” he said.

“It would not be the right time to change it,” McGrath said.

The plan aims to support the hotel industry that has been so negatively affected by Covid-19.

The Stay and Spend scheme allows taxpayers to claim a maximum of € 125 in tax credits on their expenses in the hotel sector from today until April 30, 2021.

To qualify for the maximum amount, a person must spend up to € 625 (or € 1,250 for married couples or civil couples) at qualified restaurants, pubs, hotels, B & Bs and other businesses.

People can claim relief from the cost of lodging and food, including soft drinks, but not including alcohol. But they must also have an income tax or USC liability against which the tax credit can be established.

Sinn Féin’s alternative budget requires the delivery of vouchers to families worth € 200 and € 100 per child as an alternative to the Stay and Spend program.

However, McGrath said, “We have to let the scheme breathe for when more normal times return.”

“It will be kept under review,” he said, but added that there are no plans to change it.

Finance Minister Paschal Donohoe said that the new Covid Restrictions Support Scheme (CRSS) that provides support to companies that have had to close as a result of Covid-19 restrictions at Level 3 or higher, will be will extend beyond the current March date.

He said that restaurants can access that scheme, adding that a coupon is not good for a restaurant if it cannot reopen.

Donohoe said the scheme will stick, and it is another support that will coincide with the 9% VAT reduction announced yesterday.