AQW 45340/22-27 Written question to the Minister of Finance

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.

Asked by Claire Sugden MLA on 1 May 2026

  • Answered
  • Written
Tabled
1 May 2026
Answer due by
19 May 2026
Answered
14 May 202613 days after tabling
Department
Department of Finance
Priority question
No

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.

Official sources