AQO 973/22-27

Miss Nuala McAllister
Alliance Party
North Belfast

Tabled Date: 03/10/2024
Answered On Date: 15/10/2024
Priority Written: No

Question:
To ask the Minister of Finance to outline any engagement her Department has had with the UK Government in relation to reducing VAT for the hospitality, tourism and beauty sectors.

Answer:

My Department has repeatedly raised with the British Treasury the negative impact of higher rates of VAT on the hospitality, tourism and beauty sectors in the North, particularly when compared with the South where a lower rate applies. Unfortunately the British Government, which is responsible for setting the VAT rate, has so far has been unwilling to address this.

Rest assured my officials will continue to highlight the adverse impacts of the taxation system locally, in their regular meetings with Treasury counterparts. We will continue to highlight the economic importance of a reduction in VAT for these sectors, to help struggling businesses and safeguard jobs here.