REACTIVE STATEMENT FROM HU ON VAT HARMONISATION MOTION AT ASSEMBLY

11 February 2025

Reactive statement from Hospitality Ulster on VAT harmonisation motion at Assembly

Colin Neill, Chief Executive, Hospitality Ulster, said:

"Hospitality Ulster echoes the sentiment of the private members' motion put forward by UUP MLAs and passed in the Assembly today that called for the harmonisation of hospitality VAT rates across the island of Ireland. As hospitality businesses in the Republic prepare to move to a 9% rate for food-based hospitality, their counterparts in Northern Ireland are forced to endure an unfair 20% rate that will make the sector less attractive and competitive in comparison.

"We cannot allow for a situation where a business in Donegal is at a competitive advantage to one in Derry/Londonderry. As noted in the motion, the hospitality sector supports around 77,500 jobs and generates turnover of £1.9 billion annually. Unless this VAT harmonisation is delivered, the damage done to the sector will have far-reaching effects across the Northern Ireland economy. Until such time, the NI Executive must step up and provide interim support to prevent the loss of the hospitality businesses that are the region's tourism infrastructure.

"It is encouraging that the Minister for the Economy Dr Caoimhe Archibald supported the motion. The Minister must now join forces with Hospitality Ulster to take the argument to her counterparts in Westminster, who we are aware she is meeting this week. We trust that the Minister will use this opportunity to stress the special set of circumstances we face here, make the case to the UK Government that the playing field must be levelled, and seek a follow up meeting with the Chancellor working in partnership with Hospitality Ulster where VAT can be fully discussed."