Louth TD says VAT cut will boost local jobs and small business owners

Budget 2026’s rate cut for small businesses will protect jobs and improve cashflow for restaurants, coffee shops and hairdressers in Louth who have been coming under increasing financial pressure, according to Louth Fine Gael TD, Paula Butterly.

Deputy Butterly said today’s VAT cut of 13.5% to 9% will be a permanent measure and provides long-term certainty for local businesses and the communities they serve.

The Louth TD said: “This VAT reduction is a strong statement of confidence in our small and medium enterprises, which form the backbone of our economy. This VAT cut, which kicks in next year, will make it easier for local businesses to grow, stay competitive and create more jobs.

“These businesses employ 191,000 people, with 75% of businesses employing less than 10 staff. This change will be felt on the ground; by our family-run shops, cafés, trades, and service providers who have worked hard through challenging times. It gives them space to reinvest, innovate, and expand.

“Supporting our SMEs means supporting jobs, innovation, and our local communities in Louth. Fine Gael committed to a reduction for food and food services during the last general election and it’s encouraging to see that recognised in the Government’s approach today."

Deputy Butterly added that "at a time of global economic uncertainty, the protection of our local economies and local workforce must remain our priority.”