Kilkenny native at the helm of Vintners Association criticises Budget despite VAT cut

The Vintners Association of Ireland (VFI) has denounced Budget 2026 even with the inclusion of a VAT reduction from 13.5% to 9% on food pubs, saying that it fails to deliver for traditional pubs and leaves others with an unacceptable wait for relief.

Though it welcomed the long-debated VAT cut, VFI says that delaying the change until July of next year will put pressure on food pubs during their toughest trading period in the first half of the year.

The Federation also bemoaned costs such as the minimum wage increase going into effect in January, six months before the VAT relief will be introduced and said that the Government has ignored traditional pubs by declining to introduce the Draft Excise Rebate Scheme which would have returned a share of excise on draft beer and cider to businesses.

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VFI CEO and Kilkenny native, Pat Crotty said: “This Budget is a bitter blow for traditional publicans, even allowing for the vital reduction in the hospitality VAT rate. Food-led pubs must somehow survive the hardest months of the year without the VAT support they were promised, while the thousands of traditional pubs who don’t serve food and form the backbone of rural Ireland get absolutely nothing”.

The VFI has called for the VAT cut to be brought forward to January and for the Draft Excise Rebate to be urgently revisited.

“Small publicans are being asked to carry the weight of endless new costs while being given no meaningful help to survive. Communities will lose their pubs if this continues and once they’re gone, they’re gone for good,” Crotty concluded.