‘This is about survival’ – West Cork spearheads campaign to reduce vat rate

INDEPENDENTLY-owned cafés and restaurants in West Cork have come together to launch a national campaign in a desperate bid to get the lower 9% vat rate re-introduced for the hospitality sector.

Spearheaded by Jamie Budd of Budd’s restaurant in Ballydehob, who launched a similar campaign in January, the campaign is also supported by Peter Shanahan of The Fish Basket, Long Strand; Gavin Moore of Monk’s Lane, Timoleague; Aisling O’Leary and Forbes Kelly of Revel, Clonakilty; Liam O’Leary of Wazzy Woo, Clonakilty, and Vic Sprake and Deborah Ní Chaoimhe of Camus Farm outside Clonakilty.

The group launched the ‘vat9.now’ campaign on social media, which is attracting support from hospitality businesses all over the country. You can follow their Instagram page here.

Vat returned to 13.5% for the hospitality and tourism industry in September 2023, after being reduced to 9% in November 2020, as part of government aid to the sector in the pandemic. But owners say that spiralling energy costs, combined with food and minimum wage increases, and already tight margins, are all making their businesses almost unviable.

‘I launched a similar campaign in January and it achieved an awful lot. This time I want to have one strong national voice, and to get us heard outside of Cork, including in Dublin where our so-called leaders may find it harder to ignore us,’ said Jamie.

‘Vat has doubled and so have all other costs associated with running a small business which will send people under, and the government needs to realise that,’ he said. ‘They are not going to reduce the minimum wage and don’t have control over energy costs, but the vat rate is something that can be changed overnight.’

Peter Shanahan of The Fish Basket said it was a ‘really testing time’ for the sector.

‘We can’t be busy fools,’ said Peter Shanahan of the Fish Basket, above, referring to the continuing escalation in costs. (Photo: Andrew Harris)

‘Our margins are already at breaking point. This is so disheartening because we love what we do, but we can’t be busy fools.

‘We worked all over Easter and having paid everything out, there’s very little left to cover the unexpected. This campaign is about survival,’ he said.

A heartfelt post by Revel on the vat9.now Instagram page reads: ‘Our businesses are in jeopardy. While you might see a string of people queuing for their coffee, in the scary corner of our minds, we see rent bills, electricity bills, County Council rate bills, water bills, wastewater bills, wages, suppliers, maintenance, insurance bills, and most damaging: vat bills.’

Gavin Moore of Timoleague restaurant Monk’s Lane pointed out that the campaign is as much about community as it is business.

‘We will strive to battle on, find a way to adapt and survive, but how many can? How many cosy cafés, neighbourhood restaurants, buzzy brunch spots and delicious delis have to close before the penny drops. And how will our towns and villages look with hundreds more shuttered premises?’

Siobhan O’Callaghan of Kalbos Skibbereen wrote: ‘How many more need to close before they take it seriously? It is imperative that they return the vat rate to 9% for food businesses. They need to do it now, not at the end of the year. Waiting until the budget in October is not an option. It must be done before the summer.’

Anthony Boyle and Siobhan O’Callaghan of Kalbo’s in Skibbereen have also joined the campaign. (Photo: Anne Minihane)

Other local businesses backing the campaign include Pilgrim’s Rest and Drip Coffee in Rosscarbery; Organico in Bantry; Diva Boutique Bakery in Ballinspittle; Pike Deli in Clonakilty; West Café Wine Bar in Bantry; WildFlour bakery in Innishannon; Poachers Inn in  Bandon and Blair’s Inn, Blarney. The list is growing all the time.

Jamie added that they will take whatever action gets the most visibility, and that protesting will be an option.

‘Our campaign is only going to get bigger, and our leaders need to start listening to us,’ he said.