Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

We regret any closures. We do not want to see any viable business close down. It is important to recall the context of the reduction in the VAT rate. When it first happened, it was to stimulate demand by reducing prices to drive footfall into businesses. It was continued during Covid. It was also extended in the context of the war in Ukraine and the cost-of-living pressures so many are facing. Some 14 of the 27 EU member states have a VAT rate on food services of 12% or higher. Ireland is eighth overall in that context. The main issues raised by many businesses with me are the availability of labour and the cost of doing business. We hear that message and are conscious of it.

I have no plans to change the VAT rate. If I were to propose to change one particular tax rate, I would immediately face calls, which are already being made, from retailers to change the standard rate of VAT. The vintners are looking for a reduction in excise. We would essentially be into another budget. That is not going to happen. We will work with our colleagues in the Department of enterprise on the administration of the grant scheme. The tax debt warehousing initiative has been announced. The Department is examining the combined effect. We will discuss that across government. I want to be clear in setting expectations so that businesses can plan. The Government has no plans to introduce a further budget this side of October.

See this speech in context