Motion

Motion TitleHospitality VAT Harmonisation

Motion TextThat this Assembly recognises the vital contribution of the hospitality sector to our local economy; notes that the December 2024 UK Budget Impact response from Hospitality Ulster highlighted that the hospitality industry generates an annual turnover of almost £1.9 billion and supports around 77,500 jobs, accounting for 4 out of every 5 tourism-related jobs; acknowledges that the hospitality sector, as a cornerstone of the economic landscape and fundamental to tourism growth, requires protection; further recognises that the sector faces unfair competition from the Republic of Ireland, with reports that the Value Added Tax (VAT) rate for hospitality is to be reduced from 13.5 per cent to 9 per cent; further notes that the Department for the Economy recently launched its tourism vision and action 10-year plan, with a target to double tourism in ten years to £2 billion; believes that the Department for the Economy and the Department of Finance cannot plan for growth in tourism whilst overseeing the decline of Northern Ireland’s tourism infrastructure, in particular the hospitality sector; further believes that the problems facing the hospitality industry are cross-cutting in nature and require an Executive response; calls on the Minister for the Economy and the Minister of Finance to work jointly with Hospitality Ulster to engage with HM Treasury and secure a meeting with the Chancellor of the Exchequer to advocate for a reduction in the VAT rate for hospitality in Northern Ireland to align with the Republic of Ireland; and further calls on the Executive to step in and provide support until such time as Westminster can be convinced of the special case to reduce VAT to provide a level playing field.

Motion CategoryPrivate Members' Motion

Date Tabled to Business Office28/01/2025

Date Selected By Committee28/01/2025

Date of Plenary Debate10/02/2025