HOSPITALITY ULSTER RESPONDS TO IRISH BUDGET VAT CUT
08 October 2025
Ireland's Minister for Public Expenditure Jack Chambers and Minister for Finance Paschal Donohoe
Colin Neill, Chief Executive, Hospitality Ulster, said:
“The Irish Government’s decision to reduce VAT on hospitality from 13.5% to 9% on food once again highlights the growing competitive imbalance facing Northern Ireland’s hospitality and tourism industry.
Our hospitality sector operates under immense pressure from rising costs, staff shortages, and a 20% VAT rate that is one of the highest in Europe. With the Republic of Ireland now making this latest VAT reduction, Northern Ireland businesses will be placed at an even greater disadvantage when competing for visitors, events, and investment across the island.
Northern Ireland is the only part of the UK sharing a land border with an EU member state. The VAT differential has a direct impact on local businesses, particularly in the border counties where competition with the Republic is strongest.
The time for action has long since passed. The UK Government must recognise Northern Ireland’s unique position and act immediately to level the playing field by introducing a pilot VAT reduction for hospitality and tourism here.
Hospitality is the cornerstone of our tourism offering, supporting more than 72,000 jobs and contributing £2 billion annually to the local economy. If we are to sustain and grow this vital sector, decisive intervention is needed now to ensure Northern Ireland remains competitive within the all-island tourism market."