Budget: Mainly positive response but hotel sector not happy

Irish Hotels Federation Michael Magner: “The decision not to reduce the hospitality VAT rate is short-sighted and extremely concerning given”

Budget 2025 will deliver targeted supports to people, families and businesses to alleviate pressures caused by the increased cost of living, Education Minister and Kerry TD, Norma Foley, has stressed.

She was speaking after securing an education budget of almost €12 billion, which is the highest on record with a free schoolbooks scheme to cover all students, from primary school through to completion of the Leaving Cert.

“This will alleviate the financial pressure on parents of almost one million students,” she said.

Minister Foley acknowledged that finding special education school places can be an enormous stress for parents.

“We are going to hire another 1,600 special needs assistants and 768 additional special educational needs teachers in classrooms. That will open up 2,700 new school places for children with additional educational needs,” she said.

“We are also going to ensure that our schools continue to have a supply of excellent teachers, with Budget initiatives such as a new bursary for science, technology, engineering and maths teachers, 1,000 additional school posts of responsibility, free upskilling courses for staff and funding also for the new primary curriculum and senior cycle reform,” Minister Foley stated

The Minister for Finance Jack Chambers
Public Expenditure Minister Paschal O’Donohue

She confirmed the inclusion of two other significant measures in this budget to help parents with the cost of living.

“I am going to exempt Junior Cycle and Leaving Certificate students from the usual exam fees of over €100 next summer and I am going to keep in the reduced school transport scheme fees in place for families – they will remain at €50 for primary, €75 for post primary and €125 for a family ticket,” she said.

Not everybody was happy with the Budget, however, with the hotel and hospitality sector upset that the VAT rate of 13.5 per cent was not reduced.

The Irish Hotels Federation expressed deep disappointment saying the Government has failed to respond in any meaningful way to the commercial crisis facing hospitality food-led businesses.

Minister Norma Foley: Targeted supports to people, families and businesses

IHF President Michael Magner said: “The Budget does next to nothing to address the enormous challenges confronting our sector while at the same time imposing further costs on thousands of hospitality businesses.”

“The decision not to reduce the hospitality VAT rate is short-sighted and extremely concerning given the stark commercial environment that food service businesses are operating under throughout the country,” Mr Magner said.

Other sectors were much happier, however, with the Children’s Rights Alliance saying it is the furthest the Government has gone in increasing income supports specifically for children and young people experiencing poverty.

The Arts Council has acknowledged the announcement of €140 million funding as part of Budget 2025.

“It will enable us to continue to develop the arts in Ireland, investing in infrastructure that can support high levels of activity and provide opportunities for audiences to engage with excellent artistic experiences,” said Maura McGrath, chair of the Arts Council.

Minister for Further and Higher Education, Patrick O’Donovan, said the Budget contained a major capital and funding package for tertiary education and measures to reduce the cost of education and tackle cost-of-living pressures.

BUDGET 25: One-off cost of living supports

* €250 electricity credit
* €300 fuel allowance lump sum
* €200 living alone allowance lump sum
* Double month child benefit
* €400 working family payment lump sum
* Double week for long-term welfare recipients
* €400 lump sum to selected welfare categories
* Double payment of foster care allowance

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