Following a meeting this week with Minister Paschal Donohoe and Minister Jack Chambers, the Irish Hotels Federation (IHF) has reiterated its call for ‘targeted measures’ in Budget 2026 to place Irish tourism and hospitality on a more stable and competitive footing. The federation noted that this is against a backdrop of ongoing challenges, including serious cost competitiveness issues for hospitality food-related services. Gallagher notes that a VAT rate of 9% for food-related services would bring Ireland back in line with the majority of its European competitors. For instance, Germany has recently announced a reduction in its VAT rate on food services, to 7%, from January next year – down from the 19% rate currently in place. ‘Unsustainable’Gallagher believes that this move recognises the broader social and economic role played by the hospitality sector and the particular challenges facing food businesses.