Pubs, coffee shops and restaurants 'grappling with financial pressures'

The failure of the outgoing government to cut the 13.5% VAT rate for the hospitality sector in the recent budget has been condemned.

It has, says Social Democrats Kildare south election candidate Chris Pender, sparked frustration and concern among small business owners in hospitality “particularly as they grapple with rising costs and financial pressures.”

He said the decision ignores the role that small, locally-owned cafes, restaurants, and pubs play in sustaining  communities.

“In towns and villages across Kildare South, these businesses are more than just places to eat and drink; they’re community hubs, employers, and contributors to our local identity. They deserve targeted support, not policies that could push them towards closure.”

Cllr Pender wants  a “strategic VAT reduction” that would separate food and beverage services from accommodation.

“Under this approach, the VAT rate would be set at 9% specifically for food and beverages, offering immediate relief to small businesses while maintaining the current rate for large hotel chains.”

He said a one-size-fits-all VAT approach doesn’t work.

“Major hotels charging high rates cannot be compared to a small café in Newbridge or Kildare Town. We need a tax policy that reflects the reality of these differences.”

He also wants  a complete review of support mechanisms for the sector because many government support schemes are complicated and often out of reach for smaller businesses. “We need straightforward, accessible supports that small business owners can actually use. Cllr Pender said he is focused on championing the interests of small businesses, advocating for fairer VAT policies, and ensuring government support is accessible and effective.