Swann Urges Chancellor to Back Hospitality with VAT Cut in Upcoming Budget

Robin Swann MP has written to Chancellor of the Exchequer John Healey MP ahead of next week’s Budget, calling for urgent action to support Northern Ireland’s hospitality and tourism sectors through a targeted VAT reduction.

Following engagement with local hospitality businesses across South Antrim, Mr Swann emphasised that businesses are facing severe financial pressures. Despite these challenges, the sector remains a key part of the local economy, supporting thousands of jobs and playing vitally important roles in local communities.

Earlier this week, the Northern Ireland Affairs Committee, of which Mr Swann is a member, sent a cross-party letter to the Chancellor calling on HM Treasury to introduce a four-year pilot scheme reducing VAT to 10 percent on food and accommodation across Northern Ireland.

Speaking following his letter to the Treasury, Robin Swann MP said:

"Having spoken directly with hospitality business owners right across South Antrim, the message is loud and clear - our local venues are under immense strain.

"These businesses are essential to our local communities and major are drivers of employment and economic growth across Northern Ireland."

Mr Swann highlighted the unique competitive disadvantage faced by local establishments due to lower VAT rates operating across the border in the Republic of Ireland.

Mr Swann added:

"Because of our shared border, Northern Ireland hospitality operates in direct competition with venues in the Republic of Ireland, where VAT on food, catering and accommodation is set at significantly lower rates. The standard 20 percent UK rate puts our local hotels, restaurants and venues at a distinct disadvantage.

"Our Northern Ireland Affairs Committee has delivered a clear, cross-party proposal for a four-year 10 percent VAT pilot. This measure would give local businesses in South Antrim the breathing space they need to manage rising operational costs, safeguard jobs and reinvest.

"With the Budget taking place next week, the Chancellor has an immediate opportunity to deliver a level playing field and an important lifeline for our local hospitality industry."