577 restaurants, cafes and other food businesses have closed since the VAT rate on hospitality was hiked to 13-and-a-half percent last September.

The Restaurants Association of Ireland claims a large number of these closures could have been prevented if the rate was kept at 9 percent.

45 businesses were forced to cease trading in July - 10 more than the previous month.

The RAI says the increase in VAT has forced owners to 'erode competitiveness' or 'take a hit at the bottom line'.