‘Disaster’ - Major reaction to Budget 2025 in Kilkenny

The Kilkennyman at the head of the Vintners’ Federation of Ireland (VFI), Pat Crotty, has slammed Budget 2025, calling it a ‘disaster’ for the county’s vital pub sector.

Mr Crotty, who owns well-known local hostelry Paris Texas, is among those furious over the Government’s failure to reduce VAT or excise duty for already struggling pubs.

“The Budget is a disaster for our sector,” he said.

“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.”

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With Kilkenny’s pubs already grappling with rising costs, the VFI warns that without targeted financial support, many may not survive the coming months.

“For pubs to survive our members needed to hear that VAT would be lowered to 9% along with a reduction in excise duty,” Mr Crotty said.

“What’s worse, the minor supports the 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.”

A recent report published recently by the Drinks Industry Group of Ireland highlighted the decline in the number of pubs in Kilkenny.

Meanwhile, others, including local TDs, have reacted positively to Tuesday’s Budget.

Green Party TD for Carlow Kilkenny, Malcolm Noonan, has welcomed the measures announced in Budget 2025, which he says ‘will help people with the increased cost of living, support parents and families across Carlow-Kilkenny, boost delivery of housing, and provide targeted assistance to help the most vulnerable in society’.

Another local TD, John Paul Phelan (Fine Gael) stated that Budget 2025 'is a Budget for working families and parents and it will put money back into the pockets of farmers and business owners, the elderly and the most vulnerable in our community'.

Kilkenny dairy farmer Bill O’Keeffe said that small Budget tweaks to farming schemes are appreciated but are ‘not enough to really address the big problem’.

“We’ve a family of four kids at home so child welfare increases will help,” he said.

“Parents are pensionable age so those increases will help. My wife and I are both working so tax relief will be a help inside the house.

“It is addressing some of the cost of doing living, but in general it’s the cost of doing business that is putting the most pressure on farms at the moment.”

Kilkenny motorists are in for a further squeeze with petrol taxes rising by 21.6% and diesel taxes increasing by 27.4%, resulting in an additional €12 per full tank for the average driver.

The Irish Hotels Federation, representing hoteliers in Kilkenny, stated that the Government ‘has failed to respond in any meaningful way to the commercial crisis facing hospitality food-led businesses’.

Trade union Unite, who represent many workers in Kilkenny, warned that “this week’s package will not lay the foundations for wage-led growth.”

The Executive Director of the Simon Communities of Ireland added that “it is extraordinary that so much money could be expended and yet, so little done for those at the sharpest end of the housing crisis.”

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