WESTMINSTER MISSION SECURING A FAIR VAT RATE FOR HOSPITALITY

21 May 2025

Westminster Mission: Securing a Fair VAT Rate for Hospitality

Today, Trade NI, the strategic alliance of Hospitality Ulster, Manufacturing NI, and Retail NI is spearheading a major business mission to Westminster, bringing the voice of Northern Ireland’s economy directly to the heart of UK Government.

For our sector, this presents a pivotal opportunity to press for one of the most urgently needed reforms: a reduced VAT rate for hospitality with a clear Case for Fairness.

A reduction in VAT for hospitality is not just an ask – it is an economic imperative. It would immediately boost our competitiveness, protect jobs, encourage reinvestment, and stimulate the wider tourism economy. Evidence from across Europe shows that lower VAT rates in hospitality lead to increased revenues for government, as growth offsets tax reductions.

Hospitality is the beating heart of our towns, villages, and cities. It is more than an industry – it is the cornerstone of our tourism offer, a major employer, an economic engine, and a vital contributor to community life.

Simply put, when hospitality thrives, the whole economy benefits.

Northern Ireland’s hospitality businesses continue to be disadvantaged by a VAT regime that fails to reflect our regional challenges—or the competitive landscape just across the border.

Trade NI: A United Business Voice at Westminster

Hospitality Ulster is taking a lead role in Westminster this week, alongside our partners in Trade NI, to demand real policy change, including:

• A reduced VAT rate for hospitality to bring Northern Ireland in line with our closest neighbour and restore balance within the sector.
• Fiscal flexibility for Northern Ireland that recognises our unique post-Brexit economic position under the Windsor Framework.
• Targeted measures to help hospitality businesses manage rising operating costs, energy bills, and recruitment challenges.

Our delegation will be engaging directly with ministers, MPs, and Peers, presenting a strong, united business case on behalf of our members.

Now is the time for action—and with a united front we intend to dive home our message.

What You Can Do

This is a critical moment for our industry. You can help strengthen our campaign:

• Share your experiences: We are collecting testimonials to demonstrate the damaging impact of current VAT rates.
• Engage with your MP or MLA: Urge them to support VAT reform as part of any future fiscal package for Northern Ireland.
• Stay involved: We will keep you updated on the progress of this Westminster mission and any outcomes that affect you.

Hospitality Ulster is proud to be at the forefront of this delegation, ensuring your voice is heard and your business priorities are represented at the highest levels.