Hamilton letter seeks cut in hospitality VAT

Simon Hamilton, the Finance Minister, has written to the Treasury asking for a cut in hospitality VAT.

Finance Minister, Simon Hamilton, has written to Treasury Minister, David Gauke, asking him to consider a cut in VAT for the hospitality sector.

Mr. Hamilton revealed the move to his fellow Assembly Members during a recent Question Time at Stormont, when he told them that he had been a long-time supporter of the Pubs of Ulster campaign for a reduction in the 20 per cent rate.

Commenting, the Strangford MLA added:

“The experience of our near neighbour in the Irish Republic is that a nine per cent rate there has created 30,000 new jobs and increased revenue for the Irish Exchequer by €165 million since 2011. It’s no wonder that the Irish Finance Minister, Michael Noonan has confirmed that he has extended the cut indefinitely.”

The Cut Tourism VAT Campaign, which works to see the rate cut for hospitality operators across the UK, believes that cutting the rate could generate almost £4bn in additional revenue for the Treasury and create in the region of 120,000 jobs.

Mr. Hamilton said that he had highlighted the evidence provided by the experience in Ireland in his latter to Mr. Gauke and called on him to follow that example:

“I firmly believe that a VAT cut for the hospitality sector would greatly help not just the tourism industry in Northern Ireland but also across the entire United Kingdom,” he told MLAs. “Our disadvantage compared to the Irish Republic makes the case for Northern Ireland a very convincing one.

“A policy which increases tourist visitor numbers, creates jobs and raises more in tax revenue makes perfect sense and I hope the Government see the undoubted merit.”