Budget 2025 has been condemned as “devastating” for the pub sector. 

Ahead of the announcement, the hospitality industry hoped the Government could be persuaded to reduce VAT on pubs and restaurants from its current rate of 13.5%. 

For much of the last decade, the rate was set at 9% but today Minister for Finance Jack Chambers confirmed there would be no change. 

"The Budget is a disaster for our sector,” Vintners’ Federation of Ireland CEO Pat Crotty said. 

“We have been clear with the Government about the immense pressure pubs are under, yet they have failed to deliver any meaningful support. 

“Every minister and TD fully understands this Budget will lead to closures for a huge number of businesses across the country. 

“The Government’s own report from earlier this year accepts that many of the policies introduced to improve working conditions will increase operating costs for businesses.” 

A man carrying pints. Photograph: Leah Farrell / RollingNews.ie

Mr Crotty described the support offered to the sector as “nearly useless” and said pubs would be forced to close in the coming months. 

“Publicans need proper, sustainable support mechanisms—policies that will allow us to look ahead with confidence rather than lurch from crisis to crisis,” he said. 

“We don’t want more short-term grants. One-off supports are a band-aid; they don’t solve the underlying problems.”

Hotels 

The Irish Hotels Federation (IHF) was equally negative in its reaction to the budget, describing it as “next to nothing” for their sector. 

“These businesses are facing a perfect storm as they grapple with rising costs, the impact of the 13.5% VAT rate and very tight margins,” IHF President Michael Magner said. 

“It is becoming increasingly clear that Government policies are now fundamentally at odds with the long-term interests of our sector and wider tourism industry.

“The half-baked measures announced today will have almost no impact for businesses that are struggling with ever-increasing costs, much of which are a direct result of the Government’s own economic policies.”

He urged the Government to consider an “urgent reassessment” of how the State can support the hospitality sector.

Main image: Jack Chambers and pints. Images by Rolling News and Alamy.com