Government may delay hospitality Vat cut to mid-2026 amid budget tradeoffs

A potential delay to the VAT reduction from 13.5% to 9% could free up nearly €1bn for other measures

Fianna Fáil junior minister Niall Collins pushed back on the proposal to cut VAT rates across the board, saying he would prefer targeted measures for businesses. File photo

The Government is considering whether to delay a Vat rate cut for the hospitality sector until July 2026.

Signals from within Government suggest there may be a delay to the rate cut, rather than introducing it at the beginning of next year.