Northern Ireland Hospitality Sector VAT 2026-03-10
2026-03-10
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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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.
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?
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.
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Assessment & feedback
Reduction of VAT for the hospitality sector
We Are Looking Very Closely At This Issue
Response accuracy
Q2
Partial Answer
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Context
Households in Northern Ireland using heating oil face rising fuel costs and are not protected by the energy price cap.
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?
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.
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Assessment & feedback
Cutting fuel duty and removing VAT on domestic heating oil
We Are Looking Very Closely At This Issue
It Is Too Early To Tell
Response accuracy
Q3
Partial Answer
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Context
Families are struggling with the cost of living due to rising fuel prices. In Northern Ireland, 60% of homes rely on heating oil.
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?
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.
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Assessment & feedback
Cutting fuel duty and removing VAT on domestic heating oil
We Are Looking Very Closely At This Issue
It Is Too Early To Tell
Response accuracy
Q4
Partial Answer
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Context
A parliamentary petition on VAT cut for hospitality in Northern Ireland received over 10,000 signatures.
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?
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.
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Assessment & feedback
Revisiting the idea of a VAT cut for hospitality
We Must Ensure Fair And Consistent Revenue Raising Across The Country
Response accuracy