Rural restaurants struggling to cope with VAT hike

Restaurants in rural Ireland are finding it hardest to cope with the recent VAT hike on the industry.

The Restaurants Association of Ireland says the increase - from 9 percent to 13.5 percent - has led to an average of one restaurant closing down every week.

The association is calling on the government to reduce the rate down to 11 percent to show it values the tourism industry.

Adrian Cummins, Chief Executive of the RAI, says as things stand, restaurants are struggling to cope: