Over the last few years, pubs across Dublin and the wider hospitality sector has been battling against the rising cost of business.
Rising costs driven by the Government.
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This has included:
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Mandated, significant increases in wage costs.
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Increased taxation, through higher VAT rate on food.
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Additional Employer’s PRSI contributions.
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Higher sick leave contributions.
Additional costs are also pending, including:
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Further mandated wage increases.
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Additional expenses to meet pension auto-enrolment obligations.
It all adds up to rising costs the sector simply can’t keep up with.
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The Government is asking small businesses to do too much, too fast.
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According to the Government’s own report, An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland, the combined effect of these measures was to increase payroll costs by 36.7% by 2026. This is simply not sustainable.
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In light of the growing global economic uncertainty, the LVA believes the Government needs to address these costs. Small businesses across the hospitality sector and beyond should not be forced to incur costs that threaten their existence and the jobs they help provide.
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The LVA is calling on the Government to:
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Ensure all future minimum wage increases are directly linked with inflation
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The introduction of the Living Wage timeframe should be revised to take into account the pressures on the sector and the global economic realities.
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The calculation of the Living Wage should exclude the use of public sector and FDI wages, given the significant disparity involved between those sectors and SMEs/ hospitality.
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Government review and strategic response to the cumulative impact of Government policy on cost of doing business for SMEs and hospitality.
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National strategy aimed a revitalising and growing hospitality sector.