VAT cut a win for local jobs and small business owners – Clendennen

Budget 2026’s rate cut for small businesses will protect regional jobs and improve cashflow for restaurants, coffee shops and hairdressers who have been coming under increasing financial pressure, a Fine Gael TD has said.

Deputy John Clendennen said today’s VAT cut of 13.5% to 9% will be a permanent measure and provides long-term certainty for local businesses and the communities they serve.

He said: “This VAT reduction is a strong statement of confidence in our small and medium enterprises, which form the backbone of our economy. This VAT cut, which kicks in next year, will make it easier for local businesses to grow, stay competitive and create more jobs.

“I have long advocated for measures to ease the cost pressures faced by small businesses, particularly in our rural and regional communities.  These businesses employ 191,000 people, with 75% of businesses employing less than 10 staff.

“This change will be felt on the ground; by our family-run shops, cafés and service providers who have worked hard through challenging times. It gives them space to reinvest, innovate, and expand.

“I’m very pleased to see that the voices of our SME community have been clearly heard in this year’s Budget. The measures introduced reflect many of the priorities highlighted by the over 600 businesses I surveyed to write my recent report and will make a real and positive impact on small and medium-sized enterprises across the country.

“Supporting our SMEs means supporting jobs, innovation, and local communities. Fine Gael committed to a reduction for food and food services during the last general election and it’s encouraging to see that recognised in the Government’s approach today.

“I look forward to continuing to work alongside business groups to ensure that the benefits of this VAT reduction are fully realised across the country, but especially in local and rural areas. At a time of economic uncertainty, protection of our local economies and local workforce must remain our priority.” he concluded.