The Enterprise Minister is dismissing claims he failed the hospitality sector, after the government decided not to reinstate the 9% VAT rate.
The Restaurants Association has criticised the budget decision, saying over a thousand businesses could close over the next year as a result.
It’s also described a €4,000 grant for businesses as “chicken feed”.
Minister Peter Burke thinks the government made the right decisions.
However Deputy Mattie McGrath says Budget 2025 has put increased pressure on the hospitality sector.
The Independent TD told Tipp Today the failure to cut the VAT rate to 9% will lead to reduced hours and even jobs losses in Tipperary.
“Majorly disappointed with the tourism and hospitality sector – as you know they employ 270,000 people. We could have split it – and they (the Government) say they can’t – a VAT rate for the rural rather than inside the M50 because they’re on their knees. Such a valuable industry – they tell me now they’re going to go on short time wages which would cost the economy a fortune because people are only working two days a week and would have to be subvented by the taxpayer so that’s a major disappointment.”
