5 July 2026
By Tom Collins
tom@TheCork.ie
Fine Gael Senators Eileen Lynch and Mike Kennelly have called on Government to introduce targeted supports in Budget 2027 to help secure the future of rural pubs, warning that communities across Ireland are at risk of losing one of their most important social and economic assets.
The Senators raised the issue during separate debates in Seanad Éireann this week, with Senator Lynch calling on the Minister for Finance to provide funding for a targeted tax credit, while Senator Kennelly urged the Minister for Enterprise, Tourism and Employment to support proposals put forward by the Vintners’ Federation of Ireland (VFI).
Fine Gael Cork based Senator Eileen Lynch
Senator Lynch said the scale of pub closures was deeply concerning.
“Since 2005, more than 2,200 pubs have closed across Ireland – a decline of 25% in licensed premises nationwide. The pace of closures is accelerating, with an average of 128 pubs closing every year. Rising business costs, staffing pressures and declining confidence are placing many family-run pubs under enormous strain.”
She said the closure of a rural pub has consequences far beyond the loss of a business.
“In many villages, the pub is at the heart of community life. It is where neighbours meet, local organisations gather and friendships are maintained. When a pub closes, a community loses far more than just a business – it loses an important social outlet that helps tackle rural isolation.”
Senator Lynch pointed to the situation in her own Cork North-West constituency.
“My own local pub in Bealnamorrive has been closed since March. In a village with only a school and a church, the pub was the main place where people could come together. Nearby Rylane has been without a pub since 2019, while in Aghabullogue the local pub now opens just four nights a week. These examples show just how fragile many rural pubs have become.”
She acknowledged that changing social habits mean pubs must continue to diversify, welcoming the Night-Time Economy Grant Scheme as one way of helping publicans expand into new activities and strengthen their businesses.
However, she said further action is now needed.
“The reduction in VAT to 9% was a welcome step, but it only benefits pubs serving food. Around two-thirds of Irish pubs do not serve food and have seen little direct benefit from that measure.”
Senator Lynch called on the Minister for Finance to include funding in Budget 2027 for the VFI’s proposed tax credit, describing it as “a practical, targeted business support designed to help the smaller pubs under the greatest financial pressure.”
Supporting the proposal, Senator Kennelly said traditional rural pubs remain central to community life.
“For many people, particularly in rural Ireland, the local pub is where communities come together to celebrate life’s milestones and support one another through difficult times. From christenings and confirmations to weddings, anniversaries and gatherings after funerals, the pub is there from the cradle to the grave. It is woven into the fabric of Irish family and community life.”
“It cannot be right that production companies can receive tax relief for filming in a pub while that very pub is struggling to survive. If we value vibrant villages, rural tourism, local employment and social connection, then we must value and protect our traditional pubs.”
The Senators said they would continue working together to ensure meaningful supports are included in Budget 2027.
Senator Lynch concluded:
“Supporting rural pubs is about protecting the social fabric of rural Ireland as much as it is about supporting small businesses. Once a pub closes it is often gone forever, and communities lose a piece of their identity. We are urging Government to engage positively with the VFI’s proposals and deliver the supports needed to safeguard these vital community hubs for future generations.”