There's further warnings that a return of the 13.5% VAT rate will be a major blow for the hospitality industry in the North West.
There's concern for the potential closure of the both hospitality and hairdressing businesses unless the 9 per cent VAT rate is continued.
Insolvency rates in the hospitality sector have increased by over 200 percent.
There have been a number of extensions to the reduced VAT rate however it is expected to return to 13.5% in September
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Donegal Chair of the Irish Hotels Federation Paul Diver says that would be bad news for the industry:
