'VAT cut in Budget 2026 will boost local jobs and small business owners in Westmeath'

Statement on Budget 2026 by Minister Peter Burke

The permanent VAT reduction announced in Budget 2026 will support small businesses and protect local jobs across Westmeath.

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

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.

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.

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.

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.