Delay to VAT reduction for hospitality 'a betrayal of small businesses'

Leader of Independent Ireland Michael Collins has strongly criticised the Government’s proposal to delay the long-promised VAT reduction for the hospitality sector, accusing it of “a betrayal of small businesses” and a further blow to the already crippled pub and restaurant trade.

Deputy Collins was responding to reports that the promised €1bn VAT relief for restaurants and pubs – could be pushed back to July 2026.

“This is a slap in the face to thousands of publicans, restaurateurs, café owners and their staff who were led to believe they would get meaningful relief this year,” Collins said. “Instead, they are being strung along with mixed messaging and empty promises, while their businesses close around them.”

Referring to recent figures showing the growing number of pub closures and the decimation of rural hospitality, Collins said the decision to postpone VAT relief “proves once again that this Government is utterly out of touch with the realities on the ground”.

“Between Covid lockdowns, spiralling energy bills, staff shortages and relentless regulatory pressure, the hospitality industry has been on its knees for years now,” he said. “They were told help was on the way – now they’ve been told to wait another year and a half. It’s an insult.”

According to the Cork South-West TD, the policy U-turn reveals the Government’s “disregard for the livelihoods of those in the hospitality trade – especially in rural Ireland, where pubs and restaurants are the heart of local life and community”.

He also took aim at what he called “the Government’s addiction to spin over substance”.

“We’re seeing glossy press statements about how delaying the VAT reduction allows for other ‘targeted tax cuts’. Who exactly are those cuts targeted at? Because it’s not the family trying to keep a small country pub open. It’s not the couple employing six staff in a village café. And it’s certainly not the younger generation being driven out of the industry altogether.”

Collins said his party had warned repeatedly that failure to act decisively would have long-term consequences.

“How many more closures, how many more job losses, and how many more empty buildings do we need before this Government realises that delay is destruction?”

Calling on the Taoiseach and the Minister for Finance to restore the 9 per cent VAT rate without delay, Collins added:

“The time for talk is over. If this Government has any interest left in the survival of Irish pubs and restaurants, it must act now”