Swann Renews Call for NI Hospitality VAT Pilot Following Business Rate Cuts in England

South Antrim MP Robin Swann has urged the Prime Minister to back Northern Ireland’s hospitality sector by introducing a reduced VAT pilot, following the UK Government’s decision to cut business rates for pubs, clubs and live music venues in England.

The UK Government announced new measures to reduce business rate bills for thousands of English venues to help rebuild high streets. Mr Swann argued that while relief for venues in England is welcome, hospitality operators in Northern Ireland require tailored action to address the rising cost of doing business and an unfair cross-border tax disadvantage.

Following the announcement, Mr Swann said:

"It is encouraging to see the Prime Minister taking practical steps to support pubs and local venues on high streets in England. However, hospitality businesses in Northern Ireland are facing those exact same cost pressures without the same safety net.

"Our local cafés, restaurants, pubs and hotels support tens of thousands of jobs and are central to our local economy, however, the businesses I’ve spoken to across South Antrim told me they are being forced to cut hours, reduce staffing and hold back on investment just to keep their doors open.

"Northern Ireland faces a unique challenge by sharing a land border with the Republic of Ireland, where hospitality VAT was recently reduced to just 9%, compared to our 20%. That gap puts our businesses at a direct competitive disadvantage.

"With a new Prime Minister who speaks about supporting local high streets and promoting devolution, there is a clear opportunity here to deliver real economic change. Independent legal advice has confirmed that there are no legal barriers to introducing a regional pilot in Northern Ireland, and what is needed now is the political will.

"Northern Ireland is the ideal test bed for an evidence-based pilot scheme to lower hospitality VAT. A temporary trial would protect jobs, boost tourism and give our high streets room to breathe while giving the Treasury hard evidence on the economic benefits of a UK-wide Hospitality VAT reduction.

"I am urging the Prime Minister and Treasury to work with the Executive and local industry to give Northern Ireland hospitality businesses the support they deserve."