More than 45,000 jobs have been created in the hospitality sector since the 9% VAT rate was introduced in 2011.

A new report released this morning shows it has resulted in 31,000 direct and 14,000 indirect jobs.

The Restaurants Association of Ireland has said the reduced rate has been a major driver of local employment growth.

Chief Executive Adrian Cummins warned now is not the time to change the VAT rate: “For at least five years while the businesses in rural Ireland and on the border are recovering, we want to send a message to the Government that now is not the time to change the VAT rate.

“It is a very fragile recovery at the moment and not every town and village has seen the recovery to date.”