Swann renews push for lower hospitality VAT in Northern Ireland after England business rates boost

South Antrim MP Robin Swann

South Antrim MP Robin Swann has renewed calls for a reduced rate of VAT for Northern Ireland’s hospitality sector after the UK Government announced fresh business rates relief for pubs, clubs and live music venues in England.

The Ulster Unionist MP said the new measures for England highlight the need for similar support tailored to Northern Ireland, arguing local businesses continue to face rising costs while competing with significantly lower hospitality VAT across the border in the Republic of Ireland.

Calls for Northern Ireland-specific support

The UK Government’s latest package aims to reduce business rate bills for thousands of hospitality venues in England as part of efforts to support struggling high streets.

While welcoming that decision, Mr Swann said businesses in Northern Ireland continue to face many of the same financial pressures without equivalent assistance.

He said cafés, restaurants, pubs and hotels remain vital employers and play an important role in local communities and the wider economy.

“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.”

VAT gap with Republic highlighted

A central part of Mr Swann’s argument is the difference in hospitality VAT rates on either side of the Irish border.

He said the Republic of Ireland’s reduced 9% hospitality VAT rate leaves Northern Ireland businesses at a competitive disadvantage compared with the UK’s standard 20% rate.

“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.”

Mr Swann also repeated his proposal for Northern Ireland to become the location for a pilot scheme testing a lower hospitality VAT rate.

Renewed appeal to Prime Minister

The South Antrim MP said recent legal advice indicates there are no legal barriers to introducing a regional VAT pilot in Northern Ireland, and argued the next step is securing political backing from Westminster.

“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.”

If pursued, a Northern Ireland VAT pilot would require support from both the UK Government and the Treasury.