Hospitality VAT decision risks closures and job cuts

Ireland’s food-led hospitality sector faces more closures and job losses if the Government fails to reinstate the 9% VAT rate, warns the Restaurants Association of Ireland. Over 200 restaurants have already closed this year, and the RAI argues the current 13.5% VAT – among Europe’s highest on food services – is unsustainable. Calling the €545 million cost an investment rather than a loss, the RAI urges Budget 2026 to become a turning point for SMEs and hospitality, not just a temporary fix. It is also pushing for minimum wage increases aligned with inflation, a year-long halving of employer PRSI, and urgent insurance reform to ease crippling liability premiums.

Read the full article to explore what’s at stake for Ireland’s hospitality economy.