Cork councillor calls for 9% Vat rate for small food-led businesses to be restored 

A general-election candidate in Cork has called for the Vat rate for small food-led businesses to be reinstated to 9% ahead of Budget 2025.

Labour councillor in the city's South West ward Laura Harmon said that while it should be reinstated to 9% for all businesses, including hotels, “the priority” in tomorrow’s budget announcement should be small and medium enterprises, including cafes and restaurants.

“Smaller businesses, like local cafes, shops, and restaurants, are trying so hard to keep their doors open, and should be viewed separately to larger international businesses,” said Ms Harmon.

“I believe that smaller businesses should have the 9% Vat rate applied to them as a priority in this budget [as] my view would be that the smaller businesses struggling in Cork should be prioritised first, but, broadly, I am in favour of the reduction for everyone. 

“This budget is critical for what business owners will be facing for the next financial year.

“We are seeing a consistent message on the Vat rate and how it is becoming the difference on whether cafes and restaurants in Cork continue to serve or shutter up,” Ms Harmon said.

“We want to see them thrive in a way that supports local employment and local communities. I have called for it previously, and it would be something that I would be very supportive of for Cork businesses.”