HOSPITALITY ULSTER UPDATE APRIL 2025

07 April 2025

With April now upon us and the impact of the UK Budget now beginning to bite, it would be easy to miss the other challenges that we face as an industry.

The ongoing issues of an unfair VAT rate on the Island of Ireland, extortionate business rates, the recently published Review of Licensing Legislation—which negatively impacts all licensed premises, especially 5(1)(a) and 5(1)(b) licence holders—and the implementation of Extended Producer Responsibilities (EPR) are adding further costs to our supply chain and increasing the price of goods.

On a slightly brighter note, following a successful lobby, the potential negative implications of the Deposit Return Scheme have been reduced. The on-trade (restaurants, pubs, bars, etc.) is now classified as a closed loop and will not need to charge customers a deposit, although suppliers will likely have to charge the deposit and refund on return of eligible packaging.

On skills, despite current challenges, we remain focused on attracting and retaining staff in a tight labour market. While businesses may be reducing staff due to budget constraints, maintaining a supply of new entrants is vital to meet natural churn and prepare for economic recovery.

In the coming weeks, we will host regional meetings to address challenges such as the Review of Licensing and the Surrender Principle. In the meantime, please feel free to reach out with urgent concerns.

UPDATE

Report of the Independent Review of the Liquor Licensing system in Northern Ireland including the Surrender Principle.

As you are aware the report has now been published, and the Minister for the Department of Communities has six months from the date of publication to announce what he intends to do.

Since publication, Hospitality Ulster’s Policy Team has been carefully analysing the report which contains twenty-six recommendations, many of which would impact all licensed premises, with recommendations on the Surrender Principle etc having significant implications for 5(1)(a) and 5(1)(b) licences.

In the coming weeks, we will commence regional meetings to brief members on our response to the report.

Link to the Full Report  https://www.communities-ni.gov.uk/publications/report-independent-review-liquor-licensing-system-northern-ireland-including-surrender-principle

Review of the implementation and effectiveness of the provisions within the Licensing and Registration of Clubs (Amendment) Act (NI) 2021.
NOTE: This is NOT the Surrender Principal Review

The Department has launched a series of online surveys to assist with a review of the changes made to the legislation regulating the retail sale and supply of alcoholic drinks in licensed premises and registered clubs, which came into operation on 1 October 2021. Some of the changes at this time included:

• removing additional restrictions to opening hours over Easter weekend and on Sunday nights;
• allowing larger pubs and hotels to apply to open until 2:00am up to 104 nights per year;
• allowing smaller pubs and registered clubs to apply to open until 1:00am up to 104 nights per year; and
• increasing drinking up time from 30 minutes to 60 minutes.

The surveys have been designed to capture the views and experiences from the general public, and also those who may have been impacted by these changes, such as licence holders and registered club officials. The Department would also be interested in hearing from any other interested parties for example legal firms, church groups, trade bodies, and health organisations.

https://www.communities-ni.gov.uk/consultations/first-review-licensing-and-registration-clubs-amendment-act-northern-ireland-2021

VAT Lobby

Following the motion passed by the NI Assembly, in which all major parties backed the reduction of VAT in Northern Ireland, and our appeal for the Finance Minister to collaborate with us and lead a delegation of businesses to meet the Chancellor, we have raised the matter with the new Finance Minister and are seeking a follow-up meeting to ensure he respects the motion.

We are also lobbying individual Labour Party MPs and, to that end, will host 25 Labour MPs in Belfast on 7th April to deliver one clear message: VAT must be cut to allow us to compete.

Later in the week, in Coleraine, we will partner with Retail NI to host a roundtable meeting with the NI Secretary of State, once again reinforcing our call for a VAT cut. To ensure he sees a united front, we have invited 25 local chambers and business organisations, all of whom back our call for a VAT cut.

April 2025- New Minimum and Living Wage rates