What businesses want from Budget 2026 – and their chances of getting it
As Budget 2026 approaches, the Irish business community is eagerly anticipating government measures to support enterprise, particularly in the hospitality sector. One of the most discussed proposals is the reduction of the VAT rate for food and hospitality to 9%. John Russell, partner at Baker Tilly, noted the unprecedented attention this measure has received, calling it “the most publicity I’ve ever seen around one particular aspect of an upcoming budget.”
However, Russell cautioned that while the VAT cut may offer some relief, it won’t solve the sector’s deeper financial challenges.
Energy costs are at an all time high... so whether business owners hold on to that money to improve their margins or pass it on to the customers, I personally don't think it's going to be the silver bullet that everybody thinks it's going to be.
Russell also expressed concern about the broader impact of simultaneous policy changes, such as minimum wage increases and pension auto-enrolment, which could offset any gains from the VAT cut. He questioned whether these combined measures might feel like giving with one hand and taking with the other, especially for small hospitality businesses already under pressure.
His comments reflect a cautious optimism within the sector; hopeful for support, but realistic about the limitations of isolated fiscal measures without broader structural reform.
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