Budget 2010 was claimed to be the toughest one ever and now that it is done and dusted, was it as bad as we were expecting? Many proposals were leaked in advance to prepare the public for what to expect, with the major emphasis on cost cutting as distinct from the usual focus on tax-raising measures. Minister for Finance, Brian Lenihan announced on Wednesday evening that there would be a reduction in the rate of excise duty on alcohol, and a reduced rate on VAT. The latter is now 21 per cent down from 21.5 per cent. This is what some of the local business people who will be affected by this change had to say:
Shane, who is the accounts manager in the Palace Bar, Athlone, says: “I do welcome the change in this year’s Budget regarding the decrease in alcohol costs, however my main concern is if the suppliers will reduce their rates accordingly to see a change.In past budgets, the suppliers didn’t reduce their rates enough to make an impact. This may be the case again this year, we will just have to wait and see over the coming weeks and months if the reduction will make an impact on our pockets.”
Not everyone feels positively about this week’s Budget; Joey Farrell who works in Danny Byrne’s bar in Mullingar thinks that the Government are not being at all fair with the Budget. “I don't see anything positive in relation to reduced prices in alcohol, because with the Government raising income tax I feel that they are just balancing things out again. The Budget was a load of nonsense - the Government are taking more income tax off us and are reducing the price of alcohol by a fraction. This Budget won't change anything.”
In relation to the decrease in VAT, the Budget seems to herald a very positive change for the consumer and the retailer. Sinead Denby of SBA Home Ideas, Athlone is welcoming the change in yesterday’s Budget. “I hope that confidence will be restored in the country; there will be no immediate effect today or tomorrow but it will show the stability of the economy, so hopefully it will be onwards and upwards from here,” says Sinead.
People who work in the public sector have been hit with more income tax and because of this there may be a concern that they won’t be spending as much in retail outlets. Carmel Connolly of the Athlone Chamber comments; “The reduction in VAT is welcome even though it is only down 0.5 of a per cent. It is still welcome and hopefully it will boost customer confidence. Times still remain challenging for business because most of the people who work in the public sector are going to be counting their pennies and tightening their belt, but we will try to be as positive as we can.”
