The Budget for 2025, to be announced starting 13.00 today, is unlikely to meet the expectations of the hospitality and travel industries with a VAT cut from 13.5pc to 9pc. Coalition leaders met last evening to finalise the details.
While early reports suggested that a cut to VAT for the hospitality sector remained a possibility, confined to food and beverage and decoupled from accommodation, and that a support package for businesses worth up to €120m were being considered, hopes faded during the day.
The Restaurants Association of Ireland says 612 restaurants, cafes, gastropubs and other food serving hospitality businesses have closed since the increase in the VAT rate from 9% to 13.5% on September 1 last year.
The minimum wage is expected to rise by 80 cents per hour to €13.50. This is less than the €1 which was recommended by the Low Pay Commission.
It is expected free public transport will be extended to children under nine years old. At present it is for those up to the age of five. This has been a priority for the Green Party.
Adrian Cummins of the Restaurants Association shared: Minister Peter Burke is notably pushing for the reinstatement of the 9pc Vat rate for the hospitality sector and a cut to alcohol excise duty to help pubs in Ireland. He is not expected to get both measures agreed in this year’s budget, however, so the big question is which measures the Fine Gael minister will get over the line in a bid to assuage industry concerns following an increase in costs.
