The survival of many pubs will depend on the “successful and timely implementation of the energy support scheme”, says the Vintners’ Federation, but overall prospects for the trade remain depressed “as costs continue to increase while consumers’ disposable income shrinks”.

Chief executive Paul Clancy slammed the failure to extend the special VAT rate of 9% beyond February next year, describing it as a “devastating blow to publicans serving food, and will have massive consequences for the trade throughout next year”.

“In a period of soaring inflation, businesses will be forced to increase prices at a time when their customers are in the middle of a cost of living crisis.”

The representative body also expressed dismay at the failure to reduce excise rates on alcoholic drinks.

Clancy commented: “Our members are dealing with 300% increases in electricity and gas costs so it was essential government introduced such a scheme given the genuine concern within the sector about the viability of trading during the winter months. 
 
“While we welcome the scheme’s announcement, we are urging government to publish registration requirements immediately. Publicans and small businesses need clarity and certainty today.”

In Association with

The VFI also welcomed the 50% cut in the late-night licence fee to €205.

When it comes to those who own their home, “nothing has been done to ease the rising mortgage bills hitting many homeowners,” said Joey Sheehan of mymortgages.ie.

“At a time of rising interest rates, there would have been huge merit in reintroducing mortgage interest relief in Budget 2023. Mortgage interest relief was worth thousands of euro a year to first-time buyers when it was in place. The two recent ECB interest rate hikes have pushed up the mortgage bills of many homeowners, and with more rate hikes on the cards, a lot of people will see their mortgage bills get even steeper in the coming months.

“The latest figures from the Central Bank show there has already been a pick-up in short-term mortgage arrears. Mortgage interest relief would have offered some relief to those homeowners who are seeing their mortgage bills shoot up on the back of rising interest rates.

“The government should also have tweaked the Help to Buy scheme so that more first-time buyers can actually take it up. While the extension of Help to Buy until 2024 is certainly welcome, given the shortage of new homes being built there would have been merit in extending the scope of this scheme so that it’s also available to those buying second-hand homes.

“As Help to Buy could put a tax rebate of up to €30,000 into the pockets of a first-time buyer, it is clearly a hugely valuable support – but it is unfair that such a large cohort of first-time buyers can’t take it up.

“Landlord tax breaks alone, particularly in their limited scope under Budget 2023, are unlikely to put a halt to the exodus of private landlords from the market. Another reason many individual landlords have quit the market is that they’re put off by the onerous responsibilities they must take on when renting out a property.”

Isme lamented the lack of direct support for small business other than the Temporary Business Energy Support Scheme, saying: “The TBESS is the only substantial direct support to SMEs in Budget 2023.”

The small business organisation pointed out that “it is clear that inflation mitigation measures predominate”.

“There is help for renters in the form of a €500 per annum rental credit. However, with a 97% flight of rental accommodation over the last 10 years, there are no supply-side supports for rental accommodation.

“The ending of the 9% VAT rate in early 2023 is most regrettable, and an opportunity lost to address inflation in services costs.

“The increase in the standard rate cut-off to €40,000 is long overdue and most welcome but will still mean that people earning €5,432 below the average industrial wage will be paying tax at the marginal rate.

“There are no changes to the CAT or CGT regimes, but there is reform promised on the KEEP scheme, which has failed to function since its enactment.

“The 10% levy on concrete products will severely impact the cost of construction at a time when construction input prices are already high.”