President’s Report – September 2024

It’s now September and Budget 2025 is just one month away, scheduled for Tuesday, October 1st. The Budget represents a pivotal opportunity for us to secure the reinstatement of the 9% VAT rate – an essential lifeline for our sector. To make this a reality, it is absolutely crucial that every member of the Restaurants Association of Ireland actively lobby their local Ministers, TDs and Senators. Remember, there is nothing more powerful to a political representative than being lobbied by a local constituent, especially one who provides employment in the community. Our sector employs 270,000 people nationwide, making our voice one that cannot be ignored.

In a meeting last week with Minister for Finance Jack Chambers and Minister for Public Expenditure, National Development Plan Delivery and Reform Paschal Donohoe, it was confirmed to our CEO, Adrian Cummins, that the reinstatement of the 9% VAT rate remains on the table. Historically, we’ve seen that decisions on the VAT rate, whether they were introductions or extensions, are often made at the last minute, which means we must keep the pressure on until the final hour. The future survival of our industry depends on it.

That is not hyperbole. The stakes could not be higher. Since the 50% hike in the VAT rate from 9% to 13.5% last September, 577 restaurants, cafés and other food-led businesses have permanently closed their doors. Many others are holding on until the Budget is announced, after which they will make a final decision on whether to continue operations or not. A recent poll of RAI members revealed that 74% of businesses will seriously consider closure if VAT9 is not reinstated in Budget 2025. 

On a positive note, it was encouraging to see recent polling numbers in the Irish Daily Mail and Sunday Independent showing strong public support for independent restaurants, cafés and the VAT9 movement. This public backing highlights the crucial role our establishments play in local communities. It also serves as a reminder to certain quarters within Government Departments that when those with on-the-ground experience and a deep understanding of our industry’s current challenges speak out, their voices must be heard.

Rest assured that Adrian, the entire RAI team and I will be working tirelessly this month to advocate for our industry. All we ask is that you do the same: reach out to your local politicians, request meetings and make them acutely aware of the dire situation we face and the urgent need for support, change and VAT9.