The avenues of aid to businesses are also being considered to save public finances.
The time has come for savings and budget cuts as the public deficit worsens further in 2024. According to documents transmitted by Bercy on Monday and consulted by parliamentarians, the public deficit would reach 5.6% of GDP this year instead of the hoped-for 5.1%, and would even plunge to 6.2% in 2025.
After local authority spending, it is now the companies’ spending that is in the crosshairs of the General Inspectorate of Finance (IGF). In total, 3 billion euros of aid to companies could possibly be withdrawn by the next government.
Budget cuts in business aid
To reduce government spending by 3 to 10 billion euros, the IGF recommends several budget cuts in the context of business support measures. On the one hand, these could concern the chambers of commerce and industry, then those of trades and crafts. In particular: the elimination of their business support missions would bring in 700 million euros to the State. A reduction of 100 million euros in the budget of the public investment bank Bpifrance is also envisaged.
On the other hand, the Research Tax Credit (CIR) – which encourages companies to engage in R&D activities – costs 6 to 7 billion euros per year. The IGF identifies 450 million euros of potential savings by eliminating the system for young doctors – allowing them to obtain a first permanent research job after their doctoral thesis – or that of expenses relating to technological monitoring.
The end of energy aid
Similarly, tax breaks on fuels – considered too generous – are also targeted, because they would amount to nearly a billion euros in savings. The target here is reduced rates for biofuels, but also preferential rates on diesel for public road transport, taxis and company fleets. Among this tightening, 100 million euros could be obtained by granting preferential electricity rates only to high-consumption industries (known as “electro-intensive”).
The major subject of VAT is also on the table, a viable and simple savings vector to implement according to the IGF. Raising the intermediate rate from 10 to 12.5% would bring in 3 billion euros and removing reduced rates in professions such as the hotel and catering industry would represent an additional 4 billion euros.
Finally, other various avenues are also being considered, such as raising the preferential tax rate on income from intellectual property from 10 to 15% (200 million euros in savings), restricting the tax advantage linked to the transfer of businesses under the Dutreuil pact (100 million euros) or even cutting tax aid for niche sectors such as tobacconists, taxis and video game creators.
