Commons Sense

House of Commons · Ministers' Questions

Northern Ireland Hospitality Sector: VAT

Tuesday 10 March 2026 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • Government recognizes the contribution of hospitality businesses in Northern Ireland
  • Meeting scheduled for discussion on heating oil issues and fuel prices
  • Treasury considers VAT reduction complex and costly, citing pandemic-era costs

Topics (select to filter)

Questions & Answers

Q1 Claire Hanna Social Democratic & Labour Party Belfast South and Mid Down
Taxation Northern Ireland Energy
Context

The hospitality sector faces business pressures in Northern Ireland, and many households use heating oil, which is not covered by the energy price cap and is exposed to price fluctuations.

Question

What recent assessment has been made of the potential merits of reducing VAT for the hospitality sector in Northern Ireland? A majority of Northern Ireland households use heating oil and are exposed to price shocks without protection by the energy price cap. What interventions can the Treasury make against extreme price fluctuations for those not on the grid?

Answer from Dan Tomlinson

The Government recognise the important contribution that hospitality businesses make. Reducing VAT would add complexity and cost to the Exchequer. A meeting has been arranged for tomorrow to discuss heating oil issues. We are also in conversations with the Competition and Markets Authority.

Partly answered

Not addressed: Reduction of VAT for the hospitality sector

How: We Are Looking Very Closely At This Issue

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Q2 Claire Hanna Social Democratic & Labour Party Belfast South and Mid Down
Economy Taxation Energy
Context

Households in Northern Ireland using heating oil face rising fuel costs and are not protected by the energy price cap.

Question

Supporting the call for a cut in VAT for the hospitality sector, heating oil prices are rising. In Northern Ireland, 60% of homes rely on heating oil. What steps will the Treasury take to cut fuel duty and remove VAT on domestic heating oil? Will it recognise the damage caused by blocking further oil and gas licensing in the North Sea?

Answer from Dan Tomlinson

Fuel duty has been frozen, saving drivers 8p per litre. We are looking closely at heating oil issues and changes in oil and gas prices. A meeting is scheduled for tomorrow to discuss heating oil. It is too early to tell how things will pan out.

Partly answered

Not addressed: Cutting fuel duty and removing VAT on domestic heating oil

How: We Are Looking Very Closely At This Issue, It Is Too Early To Tell

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Q3 Carla Lockhart DUP Upper Bann
Economy Taxation Energy
Context

Families are struggling with the cost of living due to rising fuel prices. In Northern Ireland, 60% of homes rely on heating oil.

Question

Supporting the call for a cut in VAT for the hospitality sector and noting rising fuel prices, what steps will the Treasury take to cut fuel duty and remove VAT on domestic heating oil? Will it recognise the damage caused by blocking further oil and gas licensing in the North Sea?

Answer from Dan Tomlinson

Fuel duty has been frozen, saving drivers 8p per litre. We are looking closely at heating oil issues and changes in oil and gas prices. A meeting is scheduled for tomorrow to discuss heating oil. It is too early to tell how things will pan out.

Partly answered

Not addressed: Cutting fuel duty and removing VAT on domestic heating oil

How: We Are Looking Very Closely At This Issue, It Is Too Early To Tell

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Q4 Sorcha Eastwood Alliance Lagan Valley
Taxation Northern Ireland
Context

A parliamentary petition on VAT cut for hospitality in Northern Ireland received over 10,000 signatures.

Question

Supporting the VAT cut for hospitality in Northern Ireland due to the Republic of Ireland's competitive VAT rate, what interventions can the Treasury make? Would the Minister agree that revisiting the idea is worth considering?

Answer from Dan Tomlinson

Reducing VAT would be complex and costly. During the pandemic, a temporary VAT cut cost £8 billion. We must ensure fair and consistent revenue raising across the country to support public finances.

Partly answered

Not addressed: Revisiting the idea of a VAT cut for hospitality

How: We Must Ensure Fair And Consistent Revenue Raising Across The Country

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