AQW 21919/22-27

Mr Andrew McMurray
Alliance Party
South Down

Tabled Date: 04/02/2025
Answered On Date: 19/02/2025
Priority Written: No

Question:
To ask the Minister of Finance whether he will engage with the UK Government to discuss VAT changes in the Republic of Ireland on food-led hospitality businesses, with a view to mitigating the impact on businesses in Northern Ireland's border counties.

Answer:

My department has repeatedly engaged with the British Treasury on the challenges facing our hospitality and tourism industry, particularly in relation to the high VAT rates faced by businesses here relative to the South. Unfortunately, the British Government, which is responsible for setting VAT rates, has so far been unwilling to address this.

My department continues to support the local sector, for example through significant rate support, and has separately commissioned an independent study into the cost of doing business here which will consider the impact of North-South VAT differentials.

I will continue to make the case for a reduction in VAT to enable our hospitality and tourism sector to compete on a level playing field in the all-Ireland economy.

I will be raising this issue with the Chief Secretary to the Treasury at the next Finance Interministerial Standing Committee (F:ISC) meeting later this month.