A WEST Cork restaurant owner who was part of the ‘VAT9Now’ campaign along with other independent café and restaurant owners has welcomed this week’s Budget announcement that the VAT rate will be lowered from 13.5% to 9% from next July.

By Kieran O’Mahony

Speaking to The Southern Star, Jamie Budd of Budd’s Restaurant in Ballydehob said that while it is great news for the industry he would have preferred if it was introduced last year.

‘It is though a bit of an odd decision to not introduce it until July 2026. The times when we need this are the barren months of January and February though,’ said Jamie.

‘Our whole campaign in the first place was to bring the VAT down from 13.5% to 9% and it looks like it’s going to happen. However, I will wait with bathed breath until it actually happens so I won’t be celebrating just yet.’

He added that as a business owner in hospitality there are always going to be mountains to climb but that the increase of the VAT rate to 13.5% was a ‘slap in the face’ to all those owning restaurants and cafés.

‘We’ve had to weather a lot of increases that other businesses simply don’t have to like the cost of food produce. The lowering of the VAT rate doesn’t mean that we will simply be lowering our prices as we still have to weather the costs.’

Jamie and members of the VAT9Now campaign met with the then Minister for Finance Michael McGrath last year ahead of 2025 Budget talks but were left bitterly disappointed when the VAT rate wasn’t reduced.

‘They said they would help us out but it didn’t materialise in the budget and then we got an election promise that they would reduce it. I will wait until July to see it happen. I certainly don’t want to see fellow restaurateurs closing their doors as we have all worked so hard to build up a good reputation with amazing food produce available locally here in West Cork.’

Meanwhile, motorists were hit again with a hike in fuel prices with both diesel and petrol facing a rise of just over 2c per litre.

The National Minimum Wage has been increased by 65c to €14.15 per hour, while the VAT rate for completed apartments is to be cut from 13% to 9% until 2030 to help generate more developments.

Smokers were again targeted with a packet of 20 cigarettes being increased by 50c meaning they will cost just under €20, while the weekly fuel allowance was increased by €5 from €33 to €38.

Social Welfare payments, including the State pension will see an increase of €10 from next January.