Vintners' Federation of Ireland warns of rural pub closures

The Vintners' Federation of Ireland (VFI) has issued a warning that hundreds of rural pubs face closure if the government does not provide support in Budget 2027. VFI leaders, including CEO Pat Crotty and President Michael O’Donovan, met with TDs and senators outside Leinster House to advocate for the On-Trade Sustainability Scheme. This proposed measure would introduce a capped tax credit for pubs, similar to those currently available to the film and digital gaming sectors.

Financial pressures such as rising costs for energy, water, insurance, wages, and suppliers have left many publicans operating on margins of less than 1%. The VFI noted that while only 1% of Dublin pubs have closed since 2005, nearly 28% of pubs outside the capital have closed during the same period. Since 2019, the annual closure rate has increased to 128 pubs per year.

Polling commissioned by the VFI indicates strong public support for intervention, with 80% of adults believing the government should protect small rural pubs for their community roles and 85% recognizing their importance in tackling social isolation.