Last evening’s news that the food-services sector would not see a return to the 9% VAT rate in today’s Budget was met with disappointment. The Restaurants Association of Ireland expressed concern over the implications of the decision, calling it a “devastating blow” to a sector already struggling. Despite efforts from Fine Gael and Minister Peter Burke, the Government stood firm on its decision, citing cost concerns. Rumors of a compromise were discussed but didn’t come to fruition.
However, the Budget did bring some positive news for businesses, including a €170m energy support scheme and increases in VAT registration thresholds. While the minimum wage is set to rise, other incentives for businesses were announced, such as tapping into the National Training Fund and infrastructure investments. Measures to help start-ups and family businesses were also included.
Overall, the Budget presents mixed reactions from the business community, with some welcoming the measures while others remain cautious. With the upcoming election, the impact of these changes on businesses remains to be seen.