Why Northern Ireland should pilot a hospitality VAT reduction scheme

makes Northern Ireland the perfect location for a hospitality VAT pilot.

Crucially, the barriers to this pilot are not legal. Independent legal advice has concluded that neither the VAT provisions applying in Northern Ireland nor state aid considerations prevent the introduction of a reduced hospitality VAT pilot. The advice further concluded that the principal barriers are political rather than legal. Too often discussions about Northern Ireland focus on what cannot be done. In this case the legal advice is clear. The legal route exists, the economic case exists and the practical mechanism exists. What is now required is the political will to act.

This proposal is pro-business, pro-worker, pro-tourism and pro-growth. Most importantly, it is a practical and evidence-based proposal that deserves to be tested rather than dismissed. I am urging the Government and Treasury to work constructively with the Northern Ireland Executive and industry representatives to establish a hospitality VAT pilot that can help protect jobs, attract investment, strengthen tourism and unlock Northern Ireland's full economic potential. It is time to level the playing field and give our hospitality sector the fair chance it deserves to thrive.