Sinn Féin MLA Emma Sheerin has called on the British Government to consider a VAT reduction for hospitality businesses in the north.

The British Government’s current rate of VAT is charged at 20 per cent compared to 13 per cent in the south. However, the rate for food-led hospitality is set to fall even further to 9 per cent in the south.

She also welcomed a commitment from Finance Minister John O’Dowd to highlight this issue with the British Treasury.

The party’s Tourism spokesperson said:

“The Irish Government’s announcement to reduce VAT rate for food-led hospitality businesses will help to increase footfall in restaurants, hotels and cafes.

“Despite this, the British Government’s current rate of VAT means hospitality businesses in the north face higher taxes, and therefore an unfair disadvantage to neighbouring businesses across the border.

“I am calling on the British Government to introduce a similar rate for hospitality businesses here. This would be a vital help to our hotels, restaurants and pubs who have struggled in recent years with rising bills, supporting them to thrive and attract more customers.

“As the important work of strengthening our all-island economy continues, a harmonised VAT rate would represent a positive step forward and ensure a level playing field for all hospitality businesses in Ireland.

“I also welcome the commitment from the new Finance Minister to highlight this issue amongst others with the British Treasury later this month.”