VFI welcomes €15m Budget commitment to 'keep our pub doors open'
The Vintners’ Federation of Ireland (VFI) has welcomed the Government’s commitment in Budget 2027 to provide €15m in support for the rural pub sector.
The Vintners’ Federation of Ireland (VFI) has welcomed the Government’s commitment in Budget 2027 to provide €15m in support for the rural pub sector.
Tánaiste and finance minister Simon Harris said the €15m will help "keep our pub doors open". Mr Harris said details of how the money will be spent will be worked out with enterprise minister Peter Burke in the coming weeks. VFI which representing pubs across the country said it is keen to be involved in the Government's plan.
More than 2,200 pubs have closed since 2005 and VFI chief executive Pat Crotty said the €15m announcement was "a vote of confidence in our rural pubs at a time when the sector has faced enormous cost pressures".
"We welcome this support for rural pubs. €15m in support is a great starting point and we will work with it. We look forward to working with Government to make sure the support is delivered in the most effective way possible," said Mr Crotty.
"We have been making the case throughout this campaign that pubs are more than just businesses. They are at the heart of communities across Ireland, supporting local employment, tourism, and acting as a social anchor in our towns and villages.
"Publicans are already dealing with significant increases in their costs, including the increase in the minimum wage to almost €15 an hour from January, and today’s measure will give them some much-needed breathing space. For many smaller rural pubs, these pressures have become increasingly difficult to absorb.
"This is a significant step forward and will give many publicans greater confidence in the future of their businesses."
Mr Harris said rural pubs are at the heart of local communities. "Supporting our local pub helps keep an important part of rural life alive, while also supporting local jobs and the wider community. They are also key small and medium businesses hiring thousands of people around the country, including young people."
However, the Licensed Vintners Association (LVA) has said the Budget serves up nothing for pubs in Dublin or other urban areas, but a higher cost of doing business. “We are very disappointed with this year’s Budget,” said Donall O’Keeffe, CEO of the LVA. “Not only has the Government not provided any measures that will help pubs in urban areas, it has actually taken steps that will make it even more costly to do business.
"Increasing the minimum wage at a rate that is significantly above inflation will place meaningful cost pressure on pubs all around the country in the year ahead. This will be keenly felt and it will have ongoing ramifications for hospitality the length and breadth of the country. We were also very disappointed to see no movement on reducing alcohol excise, which remains the second highest rate in Europe."
Mr O'Keeffe said nothing in the Budget will help maintain the number of late night openings, which have continued to decline. "A pub or nightclub that wants to open for two additional hours, three nights per week faces an extra annual tax of about €32,000 plus legal fees. Given that this whole process was meant to be addressed by the missing in action Sale of Alcohol legislation, it seems remiss of the Government to continue to collect this tax while late night is struggling. Overall, this Budget will make it harder for pubs to operate next year and that ultimately is something that will be felt at pubs counters all around the country."
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