Restaurants 'desperate' for reduced VAT rate

Restaurants across the country are in crisis and in some cases are facing closure.

The warning comes from the Restaurants Association of Ireland, which is calling on the government for a permanent reduction in the VAT rate to 9% in this year's budget.

Paul Lenehan President of the Association says the sector is in real financial crisis

"We need it desperately," he said, "Business is tough enough as it is. The last couple of months have been tight and I don't think people will really realise until they've done their VAT returns what an extra 4.5% is going to represent.

"It's huge and it's critical," Mr Lenehan added, "Margins are already as low as I've ever seen."