VFI say morale amongst rural publicans at rock bottom

Morale among rural pub owners in Ireland is at an all-time low, according to the Vintners Federation of Ireland (VFI) president Michael O Donovan. This gloomy outlook stems from the continued closure of pubs and escalating costs, a situation that has worsened over the past few years due to government-imposed hikes in operational expenses.

The VFI is urging the government to introduce a new tax credit initiative in Budget 2027 to provide a lifeline to struggling rural pubs. The proposed scheme would offer a €20 tax credit for every 50-litre keg of draught beer or cider sold, with a cap of €20,000 per pub annually. O Donovan emphasized that rural pubs have been disproportionately affected by the economic downturn over the past two decades, leading to numerous closures.

He expressed hope that the tax credit would be a small but crucial lifeline for pubs in rural Ireland, enabling them to survive and thrive in the future. The representative body claims that over 2,200 pubs have shut down across Ireland since 2005, and the annual closure rate has been increasing. Fine Gael TD John Clendennen from Offaly supported the VFI's call for a tax credit, highlighting the significant role pubs play in rural Ireland, both socially and economically.

The government's current budget aims to support working people in various ways, and Clendennen believes that this tax credit proposal merits consideration.