Clendennen calls for 9% VAT rate to be prioritised

The 9% VAT rate should be prioritised in Budget 2026, Deputy John Clendennen has said this week.

"Businesses need a 9% VAT rate to thrive and continue to grow in a more challenging economic environment," said Deputy Clendennen.

He added that Fine Gael is fully committed to supporting the hospitality sector with changes to the VAT rate, as outlined in the Programme for Government.

“Having worked in the hospitality sector I know how important it is to support small and medium businesses in our towns, villages, and cities.

“Small businesses are the backbone of the Irish economy. They are at the heart of every community, fueling our local economies, and providing good quality, stable jobs.

“Fine Gael has been unwavering in its support for Irish businesses. My colleagues Minister Peter Burke and Minister Paschal Donohoe want to ensure we help the hospitality sector deal with the ever-increasing costs of doing business and the ever-diminishing margins. Minister Burke is bringing forward a Competitiveness Action Plan with the Tánaiste Simon Harris before summer, which will contain measures to support our SME sector.

He said the government had done a lot to support businesses, but needs to do more and the 9% VAT rate would make a huge difference for the hospitality sector.

“Businesses across the country are facing challenges, that’s why we decided to pause the increase of statutory sick days from five to seven and delayed the introduction of a living wage until 2029.

“We can’t ignore that there are cafes, restaurants, and other hospitality businesses across Ireland that are struggling to keep afloat.

“Fine Gael has always backed business, especially our small and medium sized enterprises, and we want to see them thrive with a 9% VAT rate,” concluded Deputy Clendennen.