Commons Sense

House of Commons · Westminster Hall

Northern Ireland Hospitality Sector

15 July 2026 · 3 other contributors · 3,041 words

Opened by Robin Swann Ulster Unionist Party South Antrim

Responding minister: Dan Tomlinson

EconomyNorthern IrelandBusiness & Trade

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

Read the full transcript on Parliament.uk

At a glance

Robin Swann raised concerns about northern ireland hospitality sector in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the hospitality sector in Northern Ireland due to rising energy costs, inflation, increased national insurance contributions, and reduced disposable income.
  • The hospitality sector in Northern Ireland contributes approximately 1.4 billion to the economy and supports around 50,000 jobs.
  • The Government is urged to establish a reduced VAT pilot to protect jobs, strengthen tourism, and unlock economic potential, though concerns about divergence with Great Britain are noted.

Key requests to Government

I urge the Government to establish a reduced VAT pilot for hospitality businesses in Northern Ireland to help protect jobs, strengthen tourism, and demonstrate that creative economic policy can unlock economic potential. This proposal is supported across political and commercial sectors.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Robin Swann Ulster Unionist Party South Antrim

I am concerned about the significant challenges facing the hospitality sector in Northern Ireland due to rising energy costs, inflation, increased national insurance contributions, and a cost of living crisis that reduces disposable income. Statistics show the sector contributes approximately £1.4 billion to the economy, accounts for 2.5% of economic activity, and supports roughly 50,000 jobs. The competitive imbalance with the Republic of Ireland, which has a lower VAT rate, adds further pressure.

Other contributors (3)
  • Adam Jogee Lab Newcastle-under-Lyme

    I am concerned about my wife feeling like she has been married to me for a lifetime, although it has only been three and something years. I also want to clarify that I did not go to Northern Ireland to find someone; she found me.

  • Alex Easton

    Thanks for securing the debate. Highlights that pubs, cafés, hotels, B&Bs and local attractions across Northern Ireland are operating on narrow margins amid rising costs like wages, energy, food, and insurance. Suggests targeted VAT relief to improve cash flows. Asked the Minister to acknowledge and comment on the additional pressures faced by Northern Ireland businesses due to the Northern Ireland protocol and the Windsor framework.

  • Jim Shannon DUP Strangford

    Commends the debate and supports the #VATsTheProblem campaign. Notes that Northern Ireland's hospitality sector faces a 120% tax disparity compared to the Republic of Ireland, which has dropped VAT on food and café catering to 9%. Asks if targeted VAT relief would improve cash flows and resilience. The hon. Member agreed with the concerns raised about VAT reduction but noted that it is important to be clear about specific examples, such as the wedding reception at the McKeever group's Dunsilly hotel. I intervened to praise Ulster women as the best, and asked the Minister if he would consider a VAT reduction for hospitality businesses based on evidence from other parts of Europe where governments are considering such measures.

Government Response

Dan Tomlinson

The Government recognize the contribution of hospitality businesses to employment and local economies but are concerned about creating divergence between Great Britain and Northern Ireland through different VAT rates. A reduction in VAT for hospitality would cost around £11 billion annually, equivalent to the total expenditure on the Royal Navy or the annual child benefit bill. The Minister introduced temporary measures like the Great British summer savings scheme to reduce VAT on eligible family attractions and children's meals, offering support worth £4.3 billion across retail, hospitality, and leisure properties with £185 million allocated for Northern Ireland. While the Government will continue listening to representations from the sector, they do not believe a Northern Ireland-specific pilot is the right approach.

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