Publicans warn of ‘avalanche’ of closures without help from Budget '27

With Budget 2027 tomorrow, the Cork-based president of the Vintners’ Federation of Ireland (VFI) has warned that there will be an “avalanche” of pub closures in Cork without government support.

Michael O’Donovan, owner of the city’s Castle Inn, was commenting on a report which shows that 400 pubs have closed in Cork since 2005.

The report, compiled on behalf of the Drinks Industry Group of Ireland by Dublin City University economist and associate professor emeritus Anthony Foley, shows that the number of pubs operating in Cork has declined from 1,221 in 2005 to 821 last year, or by 33%.

While only 1% of pubs in Dublin have closed since 2005, 28% have closed outside the capital.

Mr O’Donovan told The Echo that now is the time for action and support for the pub industry to prevent further closures.

“There is an undeniably compelling case for the Government to act in Budget 2027,” Mr O’Donovan said.

“Failure to do so will drive the final nail firmly into the coffin of many more pubs in your local area, and, for many, the last pub in your community.”

The VFI is calling on the Government to introduce an on-trade sustainability scheme in Budget 2027, a targeted tax credit on draught products sold in pubs, to help protect Ireland’s pub network and the jobs and communities it supports.

The tax credit itself would be valued at €20 per 50-litre keg of beer, with pubs eligible to claim up to €20,000 per year.

Mr O’Donovan added that he feels that Budget 2027 “has become one of the most key budgets in recent history for the pub trade”.

“Without some intervention, we will see an avalanche of closures in the next 12 to 24 months.

“So we are pleading with the Government to please consider our proposal and to implement this in the upcoming budget.”

Mr O’Donovan also stated that pubs continue to play a crucial role in the social fabric of communities, by offering an important space for people to interact and support for mental health.