Gary Middleton, who sits on the Assembly Economy Committee, said:
“The Irish Government’s decision to reduce the rate of hospitality VAT to 9% presents a significant challenge for Northern Ireland’s hospitality sector, particularly in border areas such as Foyle where I represent. With a shared land border, businesses in Northern Ireland must be able to compete on a level playing field. Yet, under the current UK VAT regime, our hospitality industry face a clear disadvantage.
This disparity will make it increasingly difficult for local businesses to remain competitive. If the UK Government fails to act, we risk seeing Northern Ireland’s hospitality sector fall behind, leading to lost business, job losses, and stunted economic growth.
Our hospitality industry is a key element of the local economy, supporting thousands of family incomes. The government must acknowledge the unique position of Northern Ireland and implement a reduced rate of hospitality VAT in line with the Republic of Ireland. This is not just about competitiveness; it is about fairness, sustainability, and protecting livelihoods.”