REACTIVE STATEMENT FROM HU ON UK BUDGET 2025

26 November 2025

Colin Neill, Chief Executive, Hospitality Ulster, said:

“This Budget does nothing to alleviate the pressures facing Northern Ireland’s hospitality sector. There has been no action affecting the local sector on business rates or VAT, the two measures that could provide real relief, while wage rises have further increased operating costs. At the same time, frozen tax thresholds mean consumers will have less disposable income as inflation drags more people into higher tax bands, weakening purchasing power even further.

“Our latest survey shows an industry in distress: 43% of businesses have reduced staff numbers and 70% have cut hours since the April 2025 tax increases. Half of operators are pessimistic about their own prospects, almost two-thirds view the wider market negatively, a fifth operated at a loss in Q3, 82% performed worse than in Q3 2024, and over a quarter fear failure within the next year. This Budget offers no meaningful intervention to stem that decline.

“Hospitality Ulster is calling for the Executive to do what is in their power and pass the Barnett consequential funding created by the permanently lower business rates for hospitality businesses in England to their counterparts in Northern Ireland. We are also calling for a five-year VAT pilot for Northern Ireland, a measure the UK Government can implement under the Northern Ireland Protocol, allowing us to compete fairly with Ireland’s reduced rates. This would support job retention, regeneration, and regional fairness, giving many operators the breathing space they need simply to survive before competitive forces naturally pass savings on to consumers.”