The Government has announced 50 separate measures as part of its €7bn COVID-19 recovery package.

The July Stimulus Plan includes €5bn of spending and €2bn in credit guarantees.

A 2% VAT cut has been announced as part of the plan alongside an extension of the Help-to-Buy scheme.

The Pandemic Unemployment Payment has also been extended until April; however, it will be gradually reduced over that time period.

The Temporary Wage Subsidy Scheme will come to a close at the end of August. It is being replaced by a new scheme offering struggling businesses a flat-rate payment of €203 per employee.

Meanwhile, people who holiday at home in Ireland will get a rebate on accommodation and food bills. A rebate of up to €125 is available on spending up to €625.

The payment will take the form of a tax credit next year.

Some €2bn is also being made available in low interest loans - with the government acting as a guarantor for 80% of borrowings.

Taoiseach Micheál Martin arrives at Dublin Castle for aCcabinet meeting, 21-07-2020. Image: Niall Carson/PA Wire/PA Images

Taoiseach Michael Martin said it is an extremely wide-ranging package.

“We understand that thousands of businesses are struggling to keep going,” he said.

“We can see the impact on individual workers and their families from the fear that their jobs may never return.

“We also know that we as a nation have to work together to develop the hope and confidence on which we can build a recovery.”

Party leaders leaving Cabinet in Dublin Castle this afternoon, 23-07-2020. Image: Sam Boal/RollingNews

He claimed the plan would save hundreds of thousands of jobs in Ireland.

“The extensive package of measures we are announcing today represents and ambitious and comprehensive response to an unprecedented crisis,” he said.

“Every family, community and business in our country has felt its impact. We are not at a stage where we can return to normal but we are at a stage where we can plan our route forward.”

Meanwhile, the Tánaiste Leo Varadkar said there would be a 6-month holiday on commercial rates for most businesses.

“It is bigger in scale than most budgets and will be deployed at speed with the money being spent drawn down in the coming weeks and months,” he said.

“It is designed to help businesses to open; to help those that are already open to stay open and for those who can’t go back to their old jobs, there are new opportunities in education, training, apprenticeships and enterprise start-up grants for about 75,000 people.”

The surprise item in the package is the reduction of VAT from 23% to 21% from September until February next year. It is hoped the move will see a drop in the price of all sorts of consumer goods.

Meanwhile, the Help-to-Buy extension will allow first time buyers to claim up to 10% or €30,000 back on the cost of a new home. That is up from the 5% or €20,000 that is currently available.

Businesses can now also apply for a Restart Grant of up to €25,000 to help them reopen their doors.

Mr Martin said the package include “an unprecedented set of measures required by unprecedented times.”