Budget 2025 will close Waterford pubs, Vintners warn

Budget 2025 will lead to pubs in Waterford being forced to close warned the Vintners’ Federation of Ireland today unless "urgent targeted financial supports aren’t introduced soon."

"The Government’s Budget will have serious repercussions for local pubs here in Waterford," the Vintners’ Federation of Ireland said, "With no reduction in VAT or excise duty, many of our pubs – especially those that don’t serve food – are left with no meaningful support."

"Rising operational costs, from energy bills to labour costs, have already put immense pressure on these businesses, and today’s Budget does nothing to alleviate those burdens. Unfortunately, the small grants offered by the Government won’t address the deep, structural challenges pubs are facing."

"We expect to see further closures in Waterford if urgent, targeted financial supports aren’t introduced soon."

The Budget was met with "grave disappointment and frustration" by the VFI, saying that "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 said that it is "sounding the alarm" that the lack of supports for pubs in the Budget "will push many pubs to the breaking point."

VFI CEO Pat Crotty reacted to the Budget calling it "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," he said, "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.

Hotel Federation expresses concern

The Irish Hotels Federation (IHF) has expressed similar disappointment in the Budget, saying that Government has not addressed in any "meaningful way the commercial crisis facing hospitality food-led businesses."

IHF President Michael Magner said: “The Budget does next to nothing to address the enormous challenges confronting our sector while at the same time imposing further costs on thousands of hospitality businesses.”

“The decision not to reduce the hospitality VAT rate is short-sighted and extremely concerning given the stark commercial environment that food service businesses are operating under throughout the country," the IHF said, "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. 

"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. The bottom line is that inaction now poses an enormous risk to our wider hospitality and tourism industry which, as one of Ireland’s largest indigenous employers, supports over 280,000 livelihoods some 70% of which are outside of Dublin.”