A reduction to the current VAT rate would be a "lifeline" for many businesses in the hospitality sector. That's according to local celebrity chef Neven Maguire. Speaking on this morning's Joe Finnegan Show, the Blacklion chef native described last week's Budget announcement as a "knife through the heart" for many in the hospitality sector, particularly smaller businesses such as cafes and coffee shops.
Since the VAT rate was increased to 13.5% in September 2023, a total of 612 restaurants, cafés, gastropubs and other food-led businesses have been forced to close permanently. According to Neven, this is a "challenging time" for many within the sector, with fears that this current crisis will only get worse.
"We have 20 rooms at MacNean House and only for that we wouldn't be able to survive," he said. "I think it's very unfair when small businesses like cafes, coffee shops and deli's are in the same pot as big hotels and they can't seem to segregate that. It's a real difficulty for so many. You think of small family businesses who are doing lovely food, yet things are just so difficult for them, and I think a reduction to the VAT rate would have been an absolute lifeline for them."
