Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what plans he has to reduce VAT on hotels and restaurants in Northern Ireland.

EU law does not allow for the application of different VAT rates in different regions of the UK. VAT rates must therefore apply across the whole of the UK. The government has considered the economic costs and benefits of a reduced rate of VAT for tourism related activities and has concluded that there is currently insufficient evidence that this would provide value for money.

The government will look again at the impact of both VAT and APD on tourism in Northern Ireland and will commission a detailed consultative report to gather further evidence to recommend how best to build upon the growing success of that sector.