Pubs out in the cold following devastating Budget

The Vintners’ Federation of Ireland (VFI) has expressed grave disappointment and frustration with the Government’s Budget announcement, which offers no reduction in VAT or excise duty for the pub sector. Despite calls for support from publicans across the country, today’s measures fall disastrously short of what is needed to protect a sector on the brink.

The Government has instead proposed a series of minor supports, but these are largely irrelevant to the core issue facing publicans, which is the rising costs of business. The VFI is sounding the alarm that these insufficient measures will push many pubs to the breaking point.

Speaking about the Government’s inaction, VFI CEO Pat Crotty states: “The Budget is a disaster for our sector. 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 county. 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.

“For pubs to survive our members needed to hear that VAT would be lowered to 9% along with a reduction in excise duty. What’s worse, the minor supports Government is  offering are nearly useless when you consider the soaring cost of doing business. Pubs are already closing their doors, and this Budget will accelerate that trend.”

The VFI warns that without more targeted financial interventions, many more pubs will not survive the coming months. “We were consistent in our communications that grants are not the answer. Publicans need proper, sustainable support mechanisms—policies that will allow us to look ahead with confidence rather than lurch from crisis to crisis. We don’t want more short-term grants. One-off supports are a band-aid; they don’t solve the underlying problems, a fact acknowledged just last week by the Minister for Enterprise Peter Burke,” says the VFI CEO.

“The Government has missed a crucial opportunity to support Ireland’s pub industry. Heading into a General Election we need real, impactful measures now, or we risk losing an essential part of our community fabric. How many pubs will be forced to close before Government intervenes?” Pat Crotty concludes.

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