Keep our pubs alive, pleads VFI CEO

On Budget week, Pat Crotty, CEO of the Vintner's Federation of Ireland says that publicans are struggling not with profits, but with survival and he is calling on the government for lower excise, a re-introduction of the 9% VAT rate for food-serving pubs and a pause in the move to a living wage. While we are already witnessing mid-week closures, reduced staffing, and in some cases, pubs shutting their doors permanently, his message is simple: give publicans a fair chance to keep their businesses alive

As the country approaches what is set to be the most consequential Budget in years, we find ourselves at a critical juncture. For publicans across Ireland it’s a moment that will determine whether many of us can continue trading or be forced to close our doors for good.

This year, our message to the government is clear: help us keep our businesses alive.

The challenges facing the pub trade are well known but no less urgent. Publicans are struggling, not with profits in mind, but with survival. Many pubs—especially those in rural areas—are now closing mid-week, not because they want to, but because they have to.

In what other business sector would a decision to stay closed make more sense than trying to stay open? It’s an absurd situation and one that’s been brought about by government policy, which is making it increasingly difficult for small, local businesses to thrive.

This Budget must address the pressures on our sector if we are to maintain the vibrant, community-centred pub trade that is an integral part of Ireland’s culture.

Publicans need proper, sustainable support mechanisms—policies that will allow us to look ahead with confidence rather than lurch from crisis to crisis.

We don’t want more short-term grants. One-off supports are a band-aid; they don’t solve the underlying problems.

Let’s be clear: publicans support fair wages and improved working conditions for our employees. We understand the move toward a living wage, and we’re not asking for a rollback of this progressive policy.

However, government cannot simply pass these costs onto us without offering the necessary support. Wage increases must be met with policies that give small businesses like ours the ability to meet those costs without going under.

At the VFI, we are calling for the following measures to be addressed in the Budget:

1. Lower excise duty
   Irish pubs are facing the highest excise duty in Europe. A reduction in this tax would provide immediate and necessary relief to publicans struggling to keep their doors open. The current rate is unsustainable, and without intervention, more and more pubs will be forced to close.
2. Re-introduce the 9% VAT rate for food-serving pubs
   We’ve already seen the effects of VAT increases across the hospitality sector. Raising it further would cripple many food-serving pubs that are still recovering from the pandemic. A return to the 9% rate would offer a lifeline to these businesses.
3. Pause the move to a living wage
   While we fully support the principle of a living wage, the timing of this policy is problematic. Many businesses are simply not in a position to absorb these additional costs. We are asking for a temporary pause on this move to give publicans time to recover and to prepare for its introduction.
4. Reduction in Employer’s PRSI: The high cost of labour is the most significant burden on publicans. A reduction in Employer’s PRSI will help to alleviate this pressure, allowing publicans to retain staff and manage their wage bills more effectively.

The harsh reality is that, unless the government takes action, many pubs will cease trading.

We are already witnessing the consequences of inaction—mid-week closures, reduced staffing, and in some cases, pubs shutting their doors permanently. If this trend continues, it will lead to the decimation of Ireland’s pub culture, a vital part of our social fabric.

We must ask ourselves: what kind of pub trade do we want in Ireland? Des the government want to preserve the independent, community-based pubs that are the heartbeat of rural and urban Ireland alike? Without substantial support, we risk losing the diversity that makes our pubs unique.

Grants and short-term measures aren’t the answer. Publicans can’t go to the bank seeking loans or long-term investment based on a one-off grant.

We need structured, long-term solutions that give us confidence in the future. The government must offer a more comprehensive support system that allows pubs to adapt and thrive, not just survive.

This Budget will determine the future of our sector. The decisions made by government will have a lasting impact, not just on publicans, but on the communities they serve. Our message is simple: we are asking for a fair chance to keep our businesses alive. We have weathered storm after storm in recent years, but without meaningful change in this Budget, many of us won’t be able to continue.

This is not just about the bottom line—it’s about preserving a key part of our identity and ensuring that future generations can continue to enjoy the uniquely Irish experience that only a local pub can provide.

We need the government to stand with us now, before it’s too late.