To ask the Minister for the Economy whether her Department has made any formal representations to HM Treasury, in the last year, advocating for a reduced VAT rate for the hospitality sector.

Our hospitality businesses are vital not only to our wider economy but also to our communities. I am committed to the development of a thriving hospitality sector and I continue to engage with its representatives. Along with the Finance Minister, I met with representatives from Hospitality Ulster and the Food to Go Association on 13 January, to discuss their proposals for a reduced VAT pilot scheme in the North.

Following that meeting, we wrote jointly to the Chief Secretary to the Treasury on 17 February, to seek a meeting with him, alongside local hospitality sector bodies, to discuss the potential for a VAT reduction pilot scheme. It is disappointing that to date, no response has been received from Treasury to that letter.

While our pubs are closing at a faster rate than in England, Wales, Scotland or the south of Ireland, the number of hospitality businesses overall has risen. Data for the years 2022-2024 indicate that there was a total of 1600 business births in the Accommodation & food services sector, with 1525 deaths. This equates to a net growth of 75 businesses, or roughly 25 extra businesses per annum over that time period.

My Department and partner organisations continue to provide a broad range of supports to businesses to help them be more competitive through energy efficiency, innovation, skills, and exploring new markets. Invest NI provides a broad range of support to small and medium sized businesses across the North primarily in the form of advice, guidance, innovation grants and access to finance.

Tourism NI is also developing a business resilience programme to deliver financial expertise for tourism businesses to provide a business healthcheck. Participating businesses will then receive a dedicated action plan.