Debate contribution: VAT for Hospitality

Debate contribution by Mr Colin McGrath on 13 May 2024.

MLA

Mr Colin McGrath

Party at the time

Social Democratic and Labour Party

Date

13 May 2024

Type

Debate contribution

Business

Opposition Business

Heading

VAT for Hospitality

Assembly identifier

Official Report component 4489468

Read the official Assembly record

Text

I will quickly make a few remarks. I was not intending to speak in the debate, and any suggestions that my remarks look like the ones that Sinéad did not get the chance to make are entirely scurrilous. I appreciate being able to take part in the debate. One of the best things about it is that nearly half of the contributors have, dare I say. slagged off the Opposition for tabling the motion but ended their contribution by saying, "We are entirely up for supporting it, because we think it is such a good idea". If you are going to dismiss our having taken the opportunity to table the motion, you should have the courage to vote against it and to go back and tell the hospitality and tourism industry in your constituency that you are not supporting it. I am confident that we can look forward to full support for our motion. I want to speak about the VAT differential and how it creates an imbalance North and South and to give a contribution from a few of the sectors. Colin Neill from Hospitality Ulster, whom we all know, has said that we suffer not only from having one of the highest hospitality VAT rates in western Europe but from the proximity of the Republic, with which we share a border, which creates a significant disadvantage on our doorstep. Similarly, the Federation of Small Businesses has made the extension of the reduced rate of VAT one of its key asks of the Treasury. Parties from across the House have called for the reduction in VAT in the debate, with many pointing towards how a reduction in VAT in the North could level the playing field between businesses North and South. I echo my constituency colleague's remarks about how it makes sense for businesses close to the border to have a level playing field when it comes to their outgoings. The cost of such an intervention will be debated, and our motion calls for options to be brought forward alongside a wider tourism and hospitality support package. However, harmonising VAT levels across the island will provide the boost that businesses need, particularly those in the hospitality and tourism sectors, which have been absolutely hammered by the cost increases over the past years. In fact, Joe Dolan — the other one, I think — the chief executive of the Irish Hotel Federation, called the South's reduction in VAT:

"the single largest job creation initiative in the history of the state".

We are not talking about something that will have a minimal impact. If we are going to support those crucial businesses in our constituencies, we need to think big in the North as well. We argue that that starts by bringing forward a costed package of interventions, including those relating to the devolution of VAT for hospitality.

477 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

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Assessed 21 October 2026 at 10:28 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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