Clendennen continues calls for 9% VAT

Fine Gael TD for Offaly John Clendennen has reiterated his commitment to securing a 9% VAT rate for the hospitality sector.

He was speaking following a recent meeting with Adrian Cummins, CEO of the Restaurants Association of Ireland, to discuss key challenges facing Ireland’s small and medium-sized enterprises (SMEs), particularly within the hospitality sector.

Among the topics addressed were the rising costs of doing business, transport and logistics pressures, increasing insurance premiums, and the urgent need for targeted measures to protect jobs and ensure the sustainability of local enterprises.

Both agreed that immediate and strategic action is required to maintain Ireland’s competitiveness and to support the backbone of the Irish economy, our SME’s.

Deputy Clendennen reaffirmed his commitment to reducing the cost of doing business in Ireland, stating: “It is imperative that we take meaningful steps to support our SMEs. They are the lifeblood of local communities and a major driver of employment across the country. One tangible measure that can deliver real impact is a return to the 9% VAT rate for the hospitality sector in Budget 2026. This would provide vital breathing space to businesses under pressure and help bolster Ireland’s competitiveness.”

He further emphasised the importance of collaborative efforts between Government, industry stakeholders, and advocacy groups to ensure that policy responses are grounded in the realities faced by business owners, particularly at a time of growing global trade pressures.

“This is something I have discussed consistently with Minister Peter Burke and ensuring the viability of enterprise is a priority for this government,” concluded Clendennen.

The previous Fianna Fáil/Fine Gael and Green Party Government opted against restoring the 9% VAT rate for elements of the hospitality sector in its last budget.

However, the 2025 Programme for Government promised to bring forward measures to support SMEs, in particular the retail and hospitality sectors", the measure would entail "changes to VAT, PRSI and other measures," it said.