9% VAT Rate Will Support Businesses Across Cork to Grow and Protect Jobs

Deputy John Paul O’Shea TD has welcomed the Government’s decision to restore the 9% VAT rate for the hospitality sector from tomorrow – 1^st July 2026, describing it as a significant and much-needed measure that will support businesses across Cork, protect local jobs and strengthen rural economies.

Deputy O’Shea said the reduction in VAT for businesses operating in the hospitality, tourism and food sectors will provide vital breathing space for enterprises that have faced sustained financial pressures in recent years due to rising energy costs, inflation, labour costs and increased operating expenses.

“Hospitality businesses are at the heart of our towns and villages across Cork. From family-run cafés and restaurants to local pubs, hotels and guesthouses, these businesses are not only employers but also important social and economic hubs within our communities.

“Running a business has never been easy, and in recent years many operators have faced enormous challenges. Fine Gael understands these pressures and is committed to supporting small and medium-sized enterprises by reducing costs and creating an environment where businesses can continue to grow and succeed.

“There are approximately 20,000 restaurants, pubs and hotels operating throughout the country, many of which are located in communities such as Macroom, Charleville, Kanturk, Millstreet, Newmarket, Buttevant and across North and Mid Cork. These businesses make a huge contribution to local employment, tourism and community life.

“The hospitality sector is one of Ireland’s largest employers. In 2025, almost 186,000 people were employed in accommodation and food services, with the vast majority of businesses employing fewer than ten people. These are often family-owned enterprises that have served their communities for generations and deserve our support.

“The reintroduction of the 9% VAT rate will help businesses remain competitive, preserve jobs and give operators greater certainty as they plan for the future. It will also assist businesses in reinvesting in their premises, expanding their services and continuing to provide high-quality experiences for customers and visitors alike.

“In rural areas in particular, hospitality businesses play an essential role in sustaining local economies. They attract visitors, support other local enterprises and contribute significantly to the vibrancy and attractiveness of our towns and villages.

“This measure demonstrates the Government’s recognition of the challenges facing the sector and its commitment to ensuring that businesses can continue to thrive.

“Fine Gael remains firmly committed to supporting SMEs and family businesses across Cork by reducing costs, encouraging investment and ensuring that local enterprises can continue to create employment and serve their communities for many years to come,” Deputy O’Shea concluded.