SMEs from the tourism, hospitality, retail and other sectors will gather outside Leinster House on Tuesday, October 15th for a Day of Action highlighting the unsustainable cost of doing business and the lack of meaningful support provided by the Government in Budget 2025.
Organised by the the Vintners’ Federation of Ireland (VFI), Restaurants Association of Ireland (RAI) and other small business representative groups, the rally aims to highlight the mounting cost pressures on small and medium enterprises (SMEs) arising from Government policies.
These policies – which have arrived virtually ‘all at once’ – include substantial increases in the National Minimum Wage and paid statutory sick days, the planned transition to a Living Wage and the upcoming introduction of pension auto-enrolment in September 2025. Combined with soaring energy costs and inflationary pressures, these Government measures have placed immense strain on SMEs, particularly those in the labour-intensive hospitality and retail sectors.
According to the Department of Enterprise, Trade and Employment’s own report, the hospitality and retail industries are the most vulnerable to these labour cost changes and will be disproportionately impacted. Small hospitality businesses will witness overall payroll cost increases of up to 36% by 2026, the report found.
Yet, despite this report being published by the Government in March, no meaningful relief has been offered to SMEs since. The ‘Power Up’ grant of €4,000 that was introduced as part of Budget 2025 averages at €77 a week and will not make any significant dent in the cost increases facing businesses next year.
The Day of Action comes as SMEs – which make up 99.7% of all active enterprises in Ireland and employ 60% of the workforce outside the public sector – demand greater recognition in the upcoming general election and the formation of the next Programme for Government.
In addition to this, the Restaurants Association of Ireland and Vintners’ Federation of Ireland have urged Taoiseach Simon Harris to meet with them urgently to collaborate on proactive, immediate measures that will prevent widespread hospitality business closures over the winter and ensure long-term viability for the sector.
Pat Crotty, CEO of the Vintners’ Federation of Ireland, said:
“Publicans across Ireland are at breaking point. Rising costs, combined with a lack of meaningful Government support, are pushing our businesses to the brink. We are here today to demand action because, without urgent intervention, many pubs won’t survive the winter.
“The hospitality sector is the backbone of our communities, particularly in rural Ireland. Yet, despite repeated warnings, the Government has ignored the reality we face. The measures announced in the Budget simply do not go far enough to safeguard the future of our industry.
“We’re not asking for special treatment, we’re asking for fairness. The current cost structure, particularly around labour policy and excise rates, is unsustainable. The Government must recognise this or face the loss of hundreds of small, family-run pubs that are integral to the social fabric of this country.”
Adrian Cummins, CEO of the Restaurants Association of Ireland, said:
“Restaurateurs, small coffee shop owners and others in the hospitality industry are hardworking people operating in what is currently an incredibly challenging business environment.
“They would much rather be serving great food and welcoming guests from across the country and across the world than travelling to Dublin to protest.
“Unfortunately, the lack of support for hospitality and small businesses in Budget 2025 made this demonstration inevitable.
“We are calling on the Government to engage with us meaningfully so that we can collaborate on policies that will fix the broken model facing hospitality businesses in Ireland today and return viability to the sector.”
