Call for government action to save NI hospitality businesses
The future of countless NI hospitality businesses is under threat unless the government urgently intervenes to help, it has been warned.
Trade groups have published a joint action plan which includes calls for VAT to be reduced to 17% and an extension of a rates holiday for businesses in a bid to save those staring down the barrel of a recession.
Actions within the plan include:
- A call for VAT to be reduced to 17%
- A call to reinstate the reduced tourism/hospitality VAT rate to support businesses that rely on household discretionary disposable income and tourism spend
- Restoration of the Business Rates Holiday which concluded in July 2022, running until April 2023
- UK-wide reform of the business rates system to ensure online and out of town businesses are paying the same rate as high street businesses
- Support from the UK government for the devolved nations to reduce business rates by providing increased financial support through the block grants
- The removal of VAT from energy bills to reduce energy costs
- The Northern Ireland Executive to establish a Rural Town and Village Infrastructure Investment Fund to ensure small and mid-sized towns and villages are supported during this economic crisis.
“Out of control energy bill increases, labour shortages, inflation, National Insurance increases, and sky-high business rates – the highest in the UK – are risking the business climate of Northern Ireland.
“Fears that many will simply go under in the next months without government assistance are keenly felt and we cannot continue on this path of destruction any longer.
“We are pushing customers away due to having to raise prices to keep pace with these rising costs, which is therefore having a detrimental impact on trade and consumer confidence.”
“Our plan has achievable, tangible solutions that would support business from day one.
