Mr Patsy McGlone (Mid Ulster): To ask the Minister for the Economy, to detail any recent discussions she has had with (i) the hospitality sector; and (ii) the British Government, on the reduction of VAT on hospitality services.
Minister for the Economy: The 20% VAT rate that local hospitality and tourism businesses face, compared to the 13.5% rate that applies to their counterparts in the south, is an issue that is regularly highlighted as one of the key pressures facing these businesses. The further reduction by the Irish Government, as of July 2026, of the VAT rate for food-led hospitality from 13.5% to 9% has widened the gap and exacerbated the challenges faced by businesses locally.
Alongside the Minister of Finance, I have consistently called on the British Government to consider a reduced rate of VAT to support our local hospitality sector.
Earlier this year, I met with Hospitality Ulster and the NI Food to Go Association about a VAT reduction pilot scheme to address differences between the north and south. Following that meeting, the Minister of Finance and I wrote to the then Chief Secretary in February requesting a meeting to present the case for a pilot scheme to reduce VAT locally. No response has been received from Treasury to date.
More recently, the Minister of Finance and I wrote jointly to the NI Affairs Committee highlighting that action is needed to ensure a level playing field for our local hospitality businesses in an all-island economy.
ENDS
