The majority of food, drink and tourism businesses say the higher VAT rate is having a negative impact.

VAT for hospitality went up from 9 to 13-and-a-half per cent last September.

Almost half of businesses say they've reduced their opening hours, while 60 per cent of food businesses have cut back on the variety they offer.

Councillor Patsy O'Brien says he has been contacted by many businesses who say with the high VAT rate and other increases it's becoming unsustainable to run their business.

He has been speaking to Midwest Radio's Alannah Nolan....