THE BUDGET 2025 UNPACKED

There is never an easy day when you are the owner of an Independent Food Business in Ireland because the people who make the decisions have NEVER walked a day in your shoes!!!

SHOCK DISAPPOINTMENT

Let's get into it...

The Good:

• Some Relief Measures: There are increases in employee and PAYE tax credits, plus a rise in the entry wage for paying higher tax. Workers should have a bit more in their pockets by early 2025—a small boost for customer spending in hospitality and food businesses.

• 9% VAT for Food & Catering (but...): The VAT rate for food, catering, and hairdressing will drop from 13.5% to 9%—but it won't kick in until July 2026. This measure, while positive in the future, does little for present pain and barely touches the urgent needs of small cafés or food trucks fighting to stay afloat today.

• Small Benefit Exemption Increased: Employers can now offer up to €1,500 in non-cash benefits per employee (an increase of €500). Keep reading, don't give up just yet...

• Up-skilling and Enterprise Supports: There’s extra funding for upskilling and improved R&D tax credits—which might help innovative food producers or those with big ambitions, especially if you’re thinking about new product development.

EMPTY PROMISES TO A BROKEN INDUSTRY

The Bad:

• No Immediate VAT Relief: The Government ignored calls for 9% VAT for restaurants and cafes now. Expect a tough year ahead—industry bodies warn that a thousand more hospitality businesses might close before the lower VAT kicks in.

• Costs Still Rising: Minimum wage is up (to €13.50/hr), auto-enrolment pension costs are coming, and sick pay entitlements increase. These add to pressure already hitting food business profit margins hard, especially for those battling rising ingredient and utility costs.

• Exclusion Issues: Small retailers and independents outside “hospitality” (think some food shops, hybrids, market stalls) don’t get relief and remain under heavy cost and competition pressure—particularly against large online competitors.

• Missed Targeted Supports: The Power Up grant for energy costs (previously up to €4,000) isn’t repeated, and broader supports are less generous this time around.

Stay in control now more than ever!

What to Do—Tracie’s Top Tips:

• Get Budget Savvy: Immediately review your cost structure—menu engineering, tight inventory controls, and flexible staffing are more vital than ever. Every percent matters this year.

• Communicate Value: Use the personal touch! Let your customers know where their euro goes—local jobs, community, great taste. Community-driven marketing wins hearts and wallets.

• Leverage Wage Increases: Position your business as a great local employer—highlight the wage rise, use it for positive PR and recruitment advantage over competitors.

• Plan Ahead for VAT: If you survive to July 2026, use the reduced VAT to plan a relaunch or value-added offers. But don’t bank on it: focus on short-term sustainability instead.

• Tap Into Upskilling & Grants: Keep checking for local upskilling opportunities and small business grants—even if they’re sector-agnostic. Use your Local Enterprise Office for advice.

• Lobby with Your Voice: Get involved with (worthy) industry associations and share your story. Collective voices sway policy—silence gets you overlooked.

Bottom line: This budget isn’t the lifeline many hoped for, but it’s no reason to fold. Now is the time for relentless focus, creative adaptation, and using every tool in your back pocket—stay proud, stay connected, and know you are the beating heart of your community.

If you need a tailored plan for your business, a menu overhaul, or a check-in with someone who gets it, book a call. You’re not alone!

Apply it, own it, survive—and get ready to thrive again.