Swann Urges Chancellor to Extend VAT Cut to all NI Hospitality

South Antrim MP Robin Swann has written to the Chancellor, Rachel Reeves, calling for a wider reduction in hospitality VAT following the government’s decision to cut the rate on children’s meals.

This week the Chancellor announced a temporary VAT reduction from 20% to 5% for kids' meals in cafes and restaurants during the summer months. Mr Swann is now urging the Chancellor to go further by implementing a Northern Ireland-wide reduction for all hospitality services to support a sector struggling with high costs.

Mr Swann said:

"The decision to lower VAT on children’s meals shows that the Treasury is willing and able to adjust these rates when necessary. It has become increasingly clear, however, our local cafes, restaurants, bars and hotels, as well as their customers, would benefit more from a wider reduction to hospitality VAT. I have written to the Chancellor to ask that she considers a full hospitality VAT reduction for Northern Ireland, either as a trial or as a more permanent option.

"The size and nature of Northern Ireland’s economy is the ideal place to trial this sort of reduction. A lower VAT rate would take the pressure off business owners and give Northern Ireland a distinct competitive advantage. If the Chancellor can afford to cut the rate for one part of menu, I hope that she would be willing to look at further, more significant steps to support the sector.

"This would be a practical step that would go a long way in providing the stability and growth our hospitality industry needs."