AQW 19037/22-27

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 29/11/2024
Answered On Date: 12/12/2024
Priority Written: No

Question:
To ask the Minister of Finance to detail (i) any discussions he has had with the UK Government in relation to VAT for Northern Ireland businesses; and (ii) how he is advocating for better support.

Answer:

My Department has repeatedly raised issues relating to VAT with the British Treasury, in particular highlighting the negative impact of higher rates in the hospitality and tourism sectors here when compared with the South where a lower rate applies. This remains an Excepted matter and unfortunately the British Government has so far been unwilling make any changes to the VAT rate.

I meet with British Government ministers on a regular basis and have pressed for a progressive tax system that both properly funds public services, and also supports economic development. I will continue to work with the Minister for the Economy as appropriate to make the case to the Treasury for a VAT regime which enables and supports our businesses to compete within the all-Ireland economy.

To better understand the costs faced by business, I have also asked my officials to scope out the potential to commission a sectoral study on the cost of doing business in the North.

My officials will continue to highlight the issues faced by local businesses in their regular meetings with Treasury counterparts.