The Small Firms Association said yesterday the 2014 budget had to deliver on “the vital need to restore consumer confidence”.

In a pre-budget meeting with Minister for Finance Michael Noonan, the SFA called on the Government to establish a State investment bank, introduce an “equitable” local property tax and to keep employment costs at their current level.

SFA chairman AJ Noonan said the Government needed to balance the budget through cuts and not tax increases. “We propose that the €500 million of new taxes [which have been previously outlined for budget 2014] are not imposed. The economy, businesses and workers are taxed enough. We cannot have any further employment or business taxes. Adjustment must be made by reducing expenditure.”

The SFA said government measures since 2010 have already added over €660 million per year to labour costs, and that any proposals to introduce mandatory sick pay, increase employer’s PRSI or the minimum wage would dramatically hit jobs.

It said the VAT rate cut to 9 per cent for hospitality-related items and the introduction of reduced employer PRSI for low-wage workers should be retained.