Sir, – With reference to the tax reduction for the hospitality sector in Budget 2026: why should one sector get special treatment and others have to pay for it?
If the people want their products they will buy them, if not get out or change the product or the marketing of same.
I, with no business experience and no family history, ran a successful joinery company for 50 years, giving good secure and pensionable employment and then I passed it on to my sons. Within that time I had to change the products and direction of the company many times.
I had to keep abreast of modern trends and what the customer wanted. I learned many things, mostly the hard way, over the years: one was to look after your clients, treat them right and give them what they want. If they are treated well the cost will not be an overriding factor. Also, take care of your employees and they will take care of you and the company.
RM Block
It is completely unfair that one sector should get better treatment than others; I have faced more recessions and got through them without looking for any help from anyone and the people running these places should pay attention to their business and not look to others to save them. – Yours, etc,
LIAM KANE,
William Kane & Co,
Baldoyle industrial Estate,
Dublin 13.
Sir, – There has been a lot of criticism of the budget decision to reduce the VAT rate for the hospitality sector from 13.5 per cent to 9 per cent at a cost to the exchequer in a full year of €681 million.
For the ordinary citizen/taxpayer, two questions arise: firstly, will this concession result in a reduction in prices for the consumer? A recent analysis from the Irish Fiscal Advisory Council has suggested that this is unlikely.
A much more certain outcome from the budget is the fact that most taxpayers will be worse off in the coming year and will be less likely to visit restaurants or pubs. Accordingly, the industry will be no better off.
So one must ask the question, what was the point? – Yours, etc,
MARTIN McDONALD,
Terenure,
Dublin 12.
Sir, – Recently, I have corresponded with your Letters page and lobbied the Government about why the VAT needed to be reduced for the small hospitality businesses from January 1st, 2026.
I am grateful for the 9 per cent change in the budget on Tuesday, but am very disappointed with regard to two matters. Firstly, the delay to July 2026 is a full 21 months after the budget of 2024, when the then government mooted they would look at it in 2025. Secondly, all food operators will avail of the reduction, which annually will cost the exchequer €670 million.
My view is that only the small businesses need it. From a Freedom of Information request that I made to Revenue, I can see that in 2024, the average VAT payment for 6,000 small restaurants/cafes and food trucks in hospitality was €22,000, with 1,200 large operators averaging €275,000.
My solution to this conundrum is to have a VAT threshold limit based on net sales, where below that threshold, all are at 9 per cent and sales above that threshold are at 13.5 per cent. That would cost the exchequer a lot less than the €670 million.
My business, which is open 21 years and has 1,000 customers a week, will struggle more in 2026 due to further wage increases and the commencement of auto-pension enrolment in January. This will add a further additional cost of €14,000 after €50,000 increases in 2024 and 2025, which will continue to hit us every year, due to laudable Government employee initiatives, material inflation and of course, the elephant in the room, Covid tax warehousing, where I pay back €1,000 a month.
My plan in my business now has to be more price increases to customers of about 7 per cent to cover the 2026 cost increases.
There are eight months to go until July. For sure, more businesses will close in this period.
I am left wondering whether the Government can find some leeway to those, like myself, who need assistance over the next eight months. – Yours, etc,
DEREK BENNETT,
Harry’s Cafe Bar,
Dún Laoghaire,
Co Dublin.
Sir, – Only last year prior to the general election, Fine Gael promised annual tax credit increases of €75 while Fianna Fáil went further with a promise of an annual increase of €100.
This week both parties reneged on those promises that were central factors in their election. With annual inflation at 2 per cent failing to match tax credits and bands to inflation, the Government has increased taxation in real terms.
Government parties continually build up election war chests with taxpayer funds they are withholding as a result of failing to match tax credit and band increases to inflation. These war chests are then rolled out in giveaway, pre-election budgets, effectively buying the election with taxpayer funds.
It is not acceptable that Irish politicians are continually allowed to engage in political gamesmanship in order to secure re-election.
The broken promises of both Government parties show Ireland now needs to bring in auto-indexation of tax credits and tax bands as in the case in Denmark , Belgium, the Netherlands and Finland. – Yours, etc,
RUARY MARTIN,
Sandyford,
Dublin 18.
An insult of a budget
Sir, –There is an old country saying “live horse and you will get grass” which probably appeals to all taxpayers in the country after an insult of a budget if you are working.
While there are economic headwinds on the horizon, particularly as regards the antics of US president Donald Trump, surely the Government could have given some small measure of relief to taxpayers with winter approaching and the cost of Christmas to be borne?
Even the measures to supposedly support food and hospitality have been kicked down the road to next July which will be of little use in the lean months of January and February, especially in the case of the cafes and restaurants.
All in all, the message to workers is jam tomorrow, jam yesterday but not jam today. – Yours, etc,
MICHAEL FLYNN,
Bayside,
Dublin 1.
Sir, – To balance the expectations of over five million people, with a limited amount of money to discharge would take the wisdom of Solomon, the courage of Katie Taylor and the simplicity of a child.
All three were in evidence in the budget on Tuesday.
The inveterate moaners addicted to misery could not find it in their hearts to congratulate our fellow citizen politicians who saw the big social, financial and delicate political picture currently on the national and dangerous world stage.
All budgets have a plus and minus scenario assembled by flawed sincere humans limited by each one’s perception of reality.
In conclusion, in my limited analysis, it is fair, balanced and thought provoking. – Yours, etc,
JOHN J MAY,
Tallaght,
Dublin 24.
Sir, – Now that Budget 2026 has been delivered, it is clear that the Government is planning to spend way more than what many experts, including the Irish Fiscal Advisory Council and the Economic and Social Research Institute, have deemed to be prudent.
Also, to be expected, Opposition parties have weighed in with their demands for more to be spent. So, everyone is ignoring the experts.
Does this all sound familiar? Roll back the years to the early/mid noughties and the fiscal crash. Warnings were issued back then and ignored. The “crash” followed.
The same applies now regarding warnings. If the proverbial hits the fan in the next handful of years, no one in the Dáil, including the Opposition, can say they weren’t warned.
Unfortunately, we know who’ll end up paying for all this. – Yours, etc,
BRIAN CULLEN,
Rathfarnham,
Dublin 16.
Sir, – The Government has decided to reduce the VAT rate on new apartments. These will most probably be bought by Real Estate Investment Trusts (REITs) who do not pay any tax on the rental income.
If the Government were to tax the REIT rental profits at the corporation tax rate of 25 per cent, that all other corporate bodies pay on rental properties, perhaps the budget deficit would be a lot lower. – Yours, etc,
FERGUS BURNS,
Castlebar,
Co Mayo.
Sir, – In your newspaper’s reporting of Budget 2026 there was no mention or analysis of the commitment to fund (€1.4 million) the set up a national artificial intelligence (AI) office. While welcoming this initiative, in my opinion this level of funding is grossly inadequate.
It is obvious that AI has the ability to transform and deliver huge efficiencies in how we deliver healthcare, education and public services.
In my own area (healthcare), AI can be used across a range of areas, including diagnostics, screening, triaging, treatment planning, therapeutics and chronic disease management.
Furthermore, it has the ability to reduce the associated administrative burden and to improve quality, safety and outcomes. Despite its fiscally cautious nature, the budget’s main focus is still on increasing spending and workforce. We are at a critical juncture in the development and rollout of AI, yet we seem to lack ambition to fund and develop the safe use of this technology.
We now have the opportunity to use AI to address many of our growing and intractable problems such as healthcare delivery.
I would encourage the Government to consider setting up a department of AI, including investment in research and development. As a country we need to get ahead of this technology and become leaders and innovators rather than late to the game consumers. – Yours. etc,
Prof DESMOND CROWLEY,
Ranelagh,
Dublin 6.
Presidential elections
Sir, – Today, when strolling on the seafront at Baldoyle, I noticed a large poster announcing “Jim Gavin for President”. Close by was another poster issued by Fingal Council (presumably intended for dog owners) which read “Don’t put your foot in it”. – Yours, etc,
TONY BURKE,
Baldoyle,
Dublin.
Sir, – To rescue the election, and in a spirit of forgiveness, I suggest that, in conjunction with the Fianna Fáil press office, Jim Gavin should appear with his former tenant, and present them with one of those oversize cardboard cheques, made out for €3,300.
And let’s get back to a three horse race, – Yours, etc,
DENIS COSTELLO,
Bray,
Co.Wicklow.
Sir, – Can we please ask Michael D to hang on for another six-nine months whilst we sort out this farce. Thankfully, now I only have two people that I don’t want to vote for, but is that the best we can do ? – Yours, etc,
DAMIAN GILL,
Dalkey,
Co Dublin.
Sir, – I note the intervention of Maria Steen following the ending of Jim Gavin’s presidential campaign.
She herself says that “democracy is supposed to mean that people get to decide”.
Perhaps she might put herself in future local and general elections to truly put this to the test.
Accordingly, she may learn the true will of the people who may (and may not) vote for her.
Go n-éirí an bóthar léi. – Yours, etc,
KEVIN DOYLE,
Milltown,
Dublin 6.
Sir, – Maria Steen’s call for the presidential election to be cancelled and run again sounds Trumpian but the lady doth protest too much, me thinks. – Yours, etc,
AIDAN RODDY,
Dublin 18.
Sir, – I doubt if the Irish presidential elections feature highly on international news , but I wonder what our European cousins think of our current campaign?
Someone who is a bit right -wing is facing someone who is a bit left -wing but both candidates are trying also to appeal to the middle ground.
In Continental terms it’s like politics from a different era. There’s not an extremist in sight.
Maybe we should just enjoy this last hurrah of normality before they inevitably change the rules and some terrifying people make a run of it in seven years time? – Yours, etc,
JOHN COTTER,
Ferrybank,
Waterford.
Exercised by Heather
Sir, – I read with interest the letter from Tom Daly (October 8th). I must beg to disagree with his need for this “stereotyping” to be remarked upon.
He seems to be arguing that women should not be singled out for exception. But I would counter – how many wars have been started by women?
Men rule the world, we all know that. Women have to work twice as hard as men to get anywhere, and we all know that too.
The names women have been called if they should try to assert their thoughts and ideas to a room, I would imagine, of mostly men, is flagrantly misogynistic, in my view.
Heather Humphreys stating a well-known fact that women hold families and societies together will hold sway with me when it comes time to vote.
And because she has not been hauled over the coals for making such a statement, it goes to prove the point – she is right. – Yours, etc,
VICTORIA MADIGAN,
Terenure,
Dublin 6.
Sir, – It’s all a bit ironic that Heather Humphreys’s promotional video demonstrating her familiarity with the North should backfire by confusing the Reichstag with Belfast’s City Hall.
It is barely 28 months since her party leader Simon Harris was telling us all that young people in the South were more familiar with Berlin than Belfast. Really? – Yours, etc,
EOGHAN MacCORMAIC,
Cill Chríost,
Gaillimh.
Universal healthcare
Sir, – Rather than Sláintecare delivering universal healthcare as originally envisaged (Letters, October 8th), it risks instead delivering a form of medical apartheid with hospitals for the rich and hospitals for the poor.
In our rush to separate public and private health systems, we may have built an unnecessary and damaging divide.
Hospital care could instead follow the model of air travel: everyone reaches their destination with the same level of safety and at the same time, but those who wish to pay for extra comforts may do so – without compromising the safety of others or timeliness of intervention.
Private healthcare, through additional funding and broadening access to expertise, could thus enhance rather than undermine the system of universal healthcare we all aspire to. – Yours, etc,
DECLAN LYONS
Ennis Road,
Limerick.
