Budget '26: Longford-Westmeath TDs reaction

The permanent VAT reduction announced in Budget 2026 will support small businesses and protect local jobs across Westmeath, according to Minister for Enterprise, Tourism and Employment, Peter Burke TD.

From 1 July 2026, the VAT rate for food, hospitality and hairdressing services will be cut from 13.5% to 9% - a move Minister Burke said will provide long-term certainty for local cafés, restaurants and service providers who have faced sustained cost pressures in recent years.

He said the 9% rate was first introduced during the COVID-19 pandemic to help businesses through one of the most difficult trading environments in decades. Restoring it now on a permanent basis reflects the Government's confidence in small businesses and their vital role in supporting jobs and communities in Westmeath.

“This is a targeted, pro-enterprise measure that will make a real difference to small and family-run businesses in towns and villages across Westmeath,” Minister Burke said.

“It will help employers manage their costs, keep staff, and invest in the future.

“Fine Gael committed to restoring the 9% VAT rate for food and hospitality, and I’m proud that commitment has now been delivered in this Budget. It shows that supporting small business remains at the heart of our economic policy.”

Minister Burke added that the VAT reduction forms part of a wider Budget package designed to ease pressure on households and local economies.

“Budget 2026 delivers meaningful supports for people and businesses alike - from increases in pensions and the Fuel Allowance, to new tax credits for workers and continued investment in housing and childcare,” he said.

“These measures will help families cope with the cost of living, while ensuring our economy stays competitive and resilient.”

“Across Westmeath, small businesses are at the centre of our communities - creating jobs, supporting tourism and keeping our towns vibrant. This VAT cut recognises their vital contribution and gives them the certainty they need to grow and plan ahead,” he concluded.

Budget 2026 is a bold and practical response to Ireland’s housing challenges and reflects the Government’s commitment to delivering homes for families around the country, Deputy Micheál Carrigy, Chair of the Oireachtas Housing Committee has said.

In a statement Deputy Carrigy said: “These measures will revitalise communities, help deliver infrastructure for more homes, as well as supporting renters in line with the Programme for Government.

“A €2bn capital investment in housing, water infrastructure and energy systems is a cornerstone of the Budget’s ambition to accelerate delivery and future-proof Ireland’s build environment.

”The reduction of VAT to 9% for the construction of new apartments is a key way to stimulate development around the country, lowering the cost for builders, as well as buyers.

“Fine Gael is standing up for young people to get onto the property ladder. The decision to extend the Help-to-Buy scheme for five years will provide certainty for first time buyers,” he added.

Budget 2026 will also reinvigorate towns and cities around the country in tackling dereliction and vacancy. Revenue will now collect the derelict site tax which will ensure stronger enforcement and accountability.

More regional towns will benefit from the Living City Initiative as the scheme is being expanded significantly from 14,000 to over 30,000 eligible properties and covers five new regional centres: Sligo, Letterkenny, Drogheda, Dundalk and Athlone.

Development costs will be further reduced through a targeted cut in corporation tax on profits from apartment construction, encouraging supply and investment. The Budget also includes an extension of landlord relief and Mortgage Interest Relief for another year, aimed at supporting rental supply and easing financial pressure on property owners.

Budget 2026 also delivers funding for additional staff at An Coimisiún Pleanála and Uisce Éireann which will speed up planning decision as well as infrastructure delivery.

“This Budget is about action, not rhetoric. We are investing in supply, cracking down on dereliction, and supporting renters and buyers alike. Budget 2026 reflects Fine Gael’s commitment to practical solutions and long-term planning. Housing is the defining issue of our time, and this Budget shows we are serious about solving it,” Deputy Carrigy concluded.