AQW 37641/11-15

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 17/10/2014
Answered On Date: 03/12/2014
Priority Written: No

Question:
To ask the Minister of Finance and Personnel for his assessment of the benefits of a reduced rate of VAT for the hospitality industry, particularly in geographical areas that attract high numbers of tourists.

Answer:

I believe a reduced VAT rate for the hospitality industry would bring a much needed boost not only to the hospitality industry, but also the wider tourism sector as a whole. That is why I brought a Motion to the NI Assembly in September 2012 that called on the Executive to pursue a separate VAT rate for the tourism/hospitality sector in Northern Ireland with HM Treasury. The previous Minister of Finance and Personnel subsequently raised this issue with the former Exchequer Secretary, David Gauke MP. The then Exchequer Secretary responded that any reduction in VAT would need to apply across the United Kingdom as a whole and that, in his view, the cost of lowering the rate of VAT for the hospitality sector would be too high. I have no indication that the Treasury position on this has changed.