Budget to decide the future of Mayo’s rural pubs – vintners in plea

The Vintners’ Federation of Ireland (VFI) has made a final plea to Government to support rural pubs in Budget 2027, warning that the decisions taken next Tuesday will see last orders for hundreds of rural pubs across the country.

VFI leaders were joined by supportive TDs and Senators outside Leinster House today after they issued a stark warning over the mounting financial pressures facing rural pubs and called for the introduction of the proposed On-Trade Sustainability Scheme, a capped tax credit for pubs similar to existing tax credits available to film, television, reality TV and digital gaming production sectors.

More than 2,200 pubs have closed since 2005. Up to 2019, the annual closure rate amounted to 112. Since then, it has climbed to 128 per year.

The VFI has also warned that rural Ireland is being disproportionately affected, with 1% of pubs in Dublin having closed since 2005. However, that figure climbs to almost 28% outside the capital.

New Amárach polling commissioned by the VFI highlights the importance the public places on rural pubs and the role they play in communities. A total of 80% of adults believe the Government should take action to protect small rural pubs because of their role in local communities, while 85% recognise that rural pubs play an important role in tackling social isolation.

VFI CEO Pat Crotty said: “This Tuesday will decide the future of hundreds of rural pubs. "Publicans have been dealing with rising Government-controlled costs across almost every aspect of their businesses.

“Wages, energy, water, insurance, and supplier costs have all increased, while many pubs are operating on margins of less than 1%.

“For rural communities, this is about much more than the future of individual businesses. The local pub is often a vital community hub, hosting GAA gatherings, fundraisers, music sessions and community events, and providing somewhere for people to come together.

“It is important to note that while welcome, two thirds of rural pubs did not benefit from the VAT reduction announced in last year’s Budget.

“We are making one final appeal to the Government ahead of Tuesday’s Budget. The decisions taken this week will have a direct impact on whether many rural pubs can continue to operate and continue serving their local communities.”

VFI President Michael O’Donovan said: “There is an undeniably compelling case for the Government to act in Budget 2027. 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’s proposed On-Trade Sustainability Scheme is specifically designed to provide targeted support to those pubs facing the greatest commercial pressure, with smaller rural pubs among those that stand to benefit.

“The next few days are critical. We’ve received huge support across the political spectrum, and we want to thank the TDs and Senators who have supported our campaign to date.”