AQW 45340/22-27

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 01/05/2026
Answered On Date: 14/05/2026
Priority Written: No

Question:
To ask the Minister of Finance whether he has engaged with HM Treasury on the case for a regionally differentiated or reduced VAT rate for hospitality in Northern Ireland.

Answer:

I have repeatedly called upon the British Government to consider a lower VAT rate for the hospitality sector in the North. This issue has been raised in meetings I have had with the Chancellor and Chief Secretary to the Treasury (CST). The issue has also been raised by the First and deputy First Ministers when they met with the Prime Minister in December 2025, therefore it has been raised at the highest political levels.

On 17 February, the Economy Minister and I wrote jointly to the CST to request a meeting, alongside local hospitality sector industry bodies, to highlight the need for the British Government to consider reforms to the VAT system and the potential for a VAT reduction pilot scheme locally.

I find it deeply disappointing that the British Government continues to show no willingness to consider this issue and has failed to take the decisive action needed to provide meaningful support to the hospitality sector here. I will continue to make the case for a tax system that is fair, proportionate and progressive allowing hospitality businesses in the North to compete on a level playing field in the all-Ireland economy.