Delay in VAT rate cut "an iron punch in a velvet glove" - Nolan

Independent TD for Offaly Carol Nolan has heavily criticised the decision of the government in today's Budget to delay the introduction of the 9% VAT rate for hospitality, food led services and hairdressers until the middle of next year.

The local TD described the move as “an iron punch in a velvet glove” from Finance Minister, Paschal Donohoe, and said it has left many small businesses feeling “utterly infuriated.”

While welcoming the VAT rate cut from 13.5% to 9%, Deputy Nolan said the government had “listened but not truly heard” how desperate the situation is for many pubs, cafes and restaurants.

“If you were to devise a tactic to leave as many small businesses go to the wall as a means of weeding out the weaker operations while clapping yourself on the back for acting in a financially responsible manner, you could not do better than to roll-out what government has rolled out today” she said.

“Instead of immediate relief they got imminent threats. Instead of a helping hand, they got an iron punch from Paschal in a velvet glove” claimed the Offaly TD.

She has now called on the Government to “rethink its decision” to put off the reintroduction of the reduced VAT rate until mid-2026.