Budget 2022 as disastrous for Hospitality says RAI

VAT rate will increase to 13.5% next September

The Restaurants Association of Ireland described today’s Budget as a disastrous, and offering no ambition to stimulate and revitalise the tourism industry.

Of particular concern is news that the 9% VAT rate is set to end in August 2022. The VAT rate will increase to 13.5% next September.

Whilst wage supports remain in place for the still restricted restaurant, hospitality, and tourism sector, they too will taper off in the new year.

CEO Adrian Cummins warned that the hospitality industry is now facing a challenging five years if it is ever to restore business to that of pre-Covid levels.

“This budget is a disaster for our members, restaurants, cafes and gastropubs, a vital element of our Tourism offering. The VAT rate ending, and wage supports tapering off will be the death nail in the coffin of many hospitality businesses this winter,” said Mr Cummins.

He added that while the supports offered in today’s budget are welcomed, there are still some long hard months ahead.

“Since lockdown measures and restrictions have been put in place, our industry has complied with the rules. Public safety and the safety of workers have always been at the top of our agenda. But this has meant serious financial difficulties for many. We needed the Government to help us fight for survival, today’s announcements fall short of that, and we will need ongoing support to trade out of this.”