Budget 2024: Lack of detail on aid a concern for hospitality business owners facing winter months

EMPLOYERS within Cork’s hospitality industry have raised concerns about the lack of detail offered in Budget 2024 in relation to supports to help businesses get through the winter months ahead.

Michael O’Donovan of the Vintners’ Federation of Ireland (VFI) and owner of the Castle Inn in Cork city said that while Paschal Donohoe announced a €250m package for business, there were no details about what the supports will entail.

“The Government announced the increase in the minimum wage which has a huge knock-on effect for our industry.

“Here in Cork recently we did a mini survey and most of the employers were paying well above minimum wage but now there’s an expectation from staff that that would be pro rata so it would be a huge cost on business, this €1.40 increase.

“This €250m package to help compensate for this hike in the business costs, we would like to see the detail of it and it’s frustrating knowing there’s going to be an increase and not knowing what is there on the other side to try and help us counterbalance it.

“With all the input costs going up, we would have liked to have seen the details of how this €250m is going to be given to businesses to help them survive the months ahead.”

Owner of Koto on Carey’s Lane in the city centre, Jeff Safar Hamidi said he was “disappointed” that the Vat rate was not addressed during the budget announcement, describing it as “the perfect opportunity for the Government to revisit the Vat increase from last month or to decouple it from hotel rooms”.

“Let’s remember most of the businesses affected by this are local and family-run businesses. A major opportunity to meaningfully support small and medium food businesses was missed here.

“We’ve been told the minimum wage is going to rise to be the living wage. This 10% rise in the minimum wage is in effect a 10% increase in wages across the board. Cause and effect. Prices will rise.”

Director of Operations at The Address Cork Eoin Daly said that from a hotelier point of view, he was quite happy with the budget in the sense that “it might get some money out there in the economy” but said that in effect it does “little to nothing for our business”.

“The only hope I’d have is for the extra money in the economy that people would have but I think these measures will just help people cope a bit better.”

Mr Daly, who travels frequently for work, described the carbon tax on fuel as “madness”, with motorists facing rising petrol and diesel prices of up to three cent per litre from today.

“This carbon tax on diesel is madness. It might not sound like a lot but if you’re paying an extra couple of quid that’s another tax on you.”