‘The small pub scene is decimated’: Leitrim publican says budget neglects small pubs

As the winners and losers of Budget 2026 became clear yesterday, rural pubs in Leitrim found themselves firmly among the latter.

The budget that was announced on Wednesday was a far cry from the giveaway bonanza the pre-election budget was, but it did have positives for workers with the minimum wage increasing, those receiving Social welfare, and tax credits for renters - though no supports were offered for traditional pubs.

“The budget hasn’t helped at all,” says Fergus McGowan, owner of The Stanford Village Inn, one of Leitrim’s oldest pubs.

McGowan is the sixth generation of his family to run the small Dromahair village pub, which opened in 1770. 

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“ It is a tough time at the moment,” says McGowan. “It is tough, they are cutting you at every angle, I haven't had a wage in three years out of it myself,” he says.

 This has been the most difficult year he has seen for the business, with tourism down, about 50%, he guesses, due to the lack of hotels in the region. In addition to a decline in people going out to local pubs, they are watching their spending due to the cost-of-living challenges. 

“The small pub scene is decimated”, he says, disappointed, but not surprised, that there was no mention of rural pubs in the budget.

 “The rural pubs got really neglected in the budget, basically, there was nothing there for them, it's just additional costs actually.”

The minimum wage was also increased by 65c per hour in the budget, set to come into effect from January, which is an added strain on small businesses. Currently, the Stanford Inn employs two staff, though it had around seven a couple of years ago, according to McGowan.

 A Missed Opportunity

“This Budget shows little understanding of how fragile the pub trade has become,” says Pat Crotty, Vintners’ Federation of Ireland, the trade organisation representing pubs outside of Dublin.  

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According to Crotty, the government has “missed a clear opportunity” in this budget, despite giving food-serving pubs a long-sought VAT reduction from 13% to 9%, which will only come into effect next July.

Rural pubs are under the pressure of payroll costs, Pension auto-enrolment, and another increase in the minimum wage coming on top of energy and insurance costs that remain well above pre-Covid levels.

“Communities will lose their pubs if this continues, and once they’re gone, they’re gone for good,” says Crotty. 

The VFI is calling on the Government to bring the VAT cut forward to January 2026 and urgently revisit a Draught Excise Rebate as part of any cost-of-business package.

Still Hopeful 

Despite challenges and a disappointing budget, he is still hopeful that small traditional pubs like his own will survive, but highlights that they need to change and diversify to stay afloat, moving into food and accommodation as well, rather than just being the local watering hole.

“You have to be positive that there are ways of reinventing yourself, but at the end of the day, there was nothing done, so you either have to bail out or try to reinvent yourself”