Local TD says reduced VAT rate will save jobs and support local businesses

Describing the reduction in VAT rate for food businesses as an important measure to support businesses, protect jobs and strengthen town centres, Tony McCormack, Fianna Fáil TD for Offaly and party spokesperson on Small and Medium Enterprises (SMEs) and Retail, has welcomed the move.

Deputy McCormack said the issue was one of the most common concerns raised with him during the general election campaign. "During the election campaign, hospitality business owners repeatedly told me that the VAT rate was placing enormous pressure on their businesses. I gave my commitment that I would campaign for a reduction because I know the difference it can make.”

He added that his support for this measure stems from personal experience. “At 21 years of age, I opened my own restaurant in Tullamore, so I understand the realities of running a hospitality business. I know what it is like to meet payroll, pay suppliers, deal with rising costs and try to keep a business viable while continuing to provide employment."

The VAT rate for food businesses was reduced from 13.5% to 9% in the 2026 budget, and has come into effect from July 1. While critics of the move have argued that the reduced rate only benefits large companies like McDonald's, Deputy McCormack said that this view misses the wider picture. "Some have suggested that this is simply a tax break for large companies such as Supermac's or McDonald's. I don't believe that is an accurate reflection of the sector.”

He added: "Many Supermac's restaurants are independently owned franchise businesses run by local people who employ local staff, sponsor local clubs and community events, and buy produce from Irish suppliers. McDonald's restaurants operate in a similar way, with many being run by local franchisees who make significant contributions to their communities.”

"More importantly, this measure is about helping the thousands of independent businesses that are the backbone of our towns and villages. It is about supporting our local cafés, restaurants, pubs, hotels, guesthouses and takeaways. It is about helping these businesses survive and thrive, continue employing and training local people, and ensuring they remain an important part of our town centres.

As Fianna Fáil spokesperson on SMEs and Retail, Deputy McCormack said he will continue to advocate for policies that support indigenous businesses. "Our hospitality sector creates employment, supports tourism, and brings life to our communities. When these businesses succeed, our towns benefit.”

“Small businesses are the lifeblood of our local economy. They create jobs, support local suppliers and keep our communities vibrant. We need to do everything we can to help them succeed, and I will continue fighting every day to ensure SMEs and retailers receive the support they need to grow and prosper.”