Publicans are demanding Government action after spending in pubs plummeted last month during the traditionally busy summer season, writes Christian McCashin and Sarah Slater.

New data from AIB shows pub spending dropped 9% in July compared to the same month last year, with the biggest falls seen in Wicklow (-19.6%), Dublin (-17.2%) and Clare (-11.1%).

It has prompted fresh calls for cuts to excise duty in the October Budget.

Yesterday, Government sources said cutting excise, which would cost tens of millions of euro, would be “difficult if not impossible” to implement, but other measures will be examined to help the struggling sector.

While most counties saw spending plummet, those involved in the latter stages of last month’s All-Ireland football and hurling championships received a boost.

Pubs in Kerry saw spending soar by 12%, while the Kingdom’s vanquished football final opponents Donegal enjoyed a 6.7% boost.

There was a 3.4% jump for pubs in Tipperary, the 2025 hurling champions, according to the data from the AIB Spend Trend, which does not include tourist spending.

But publicans are concerned the data reflects a worrying trend as changing habits, rising operating costs and the soaring price of a pint make business tougher than ever.

The chief executive of the Licensed Vintners Association (LVA), Donall O’Keeffe, said: “CSO [Central Statistics Office] figures show there was a significant drop in the number of tourists coming and how much they are spending on average.

“All of this is making the trading environment increasingly difficult for Irish hospitality.

“That is why it is essential the Government takes action in the upcoming Budget.

“We need to see VAT at 9% introduced for food as soon as possible, and there should also be cuts made to the excessively high levels of excise currently being applied to alcohol, amongst the highest in Europe.”

He added: “More pubs and hospitality businesses will close if the Government isn’t willing to help, and they can do that by reducing the considerable taxation burden they are placing on the sector in the upcoming Budget.”

Brian Foley, of the Vintners Federation of Ireland (VFI), said: “These figures reflect the severe pressures facing publicans.

“While overall consumer spending is up, the on-trade is being squeezed by higher input costs. Without targeted supports, such as a draught excise rebate, more pubs will struggle to survive.

“Pubs are vital community hubs, but the current cost environment is eroding their viability.”

Around 112 pubs close every year, with a further 600 to 1,000 closures expected in the next decade, a recent report by Tony Foley, economist and associate professor emeritus at DCU, shows.

Prof. Foley said: “This report reveals a pattern of pub closures, particularly in rural Ireland in recent years.

“The addition of profound economic uncertainty through US trade tariffs and reduced levels of inbound tourism further threaten the financial foundations of family-owned pubs.

“While the pub sector struggles, the figures compiled from 78million AIB customers’ card transactions during July showed spending was up 10% in restaurants 3% in hotels.”

BusinessPlus.ie understands that Enterprise Minister Peter Burke is examining “a range of supports” to assist small businesses, and that regional and rural enterprises are “his main concern”.

A senior Government source said “numerous representations” had been made by various business groups in favour of a reduction on alcohol excise, but such a policy would be “extremely challenging” to implement.

They said it would be “difficult if not impossible to cut excise only for alcohol sold in pubs”, adding: “Under current legislation we cannot differentiate between a pint of beer sold on licence in pubs or a bottle sold off licence.

“We would have to change the law in order to bring in such a change. I would not say we are ruling it out completely...

“There are also public health concerns around the sale of alcohol.”

High prices are a major complaint with the average price of a pint of stout now €6.07, up 26c from €5.81 a year ago.

A pint of ale is €6.08, up 23c from €5.85.

The Drinks Industry Group of Ireland wants a 7.5% reduction in alcohol excise this year and another 7.5% cut next year.