- Hospitality Ulster warned the sector cannot afford to be left behind on costs.
- Businesses in the six counties pay VAT at 20pc compared with 9pc in the Republic.
- The sector supports around 72,000 jobs.
- A survey found 92pc of members see a VAT cut as necessary for growth.
- Hospitality Ulster called for rates reform and a VAT reduction
Hospitality Ulster chief executive Colin Neill has warned that the sector cannot afford to be left behind amid pressures from energy bills, rising employment costs, business rates and taxation. Businesses in the six counties pay VAT at 20pc compared with 9pc in the Republic. The sector supports around 72,000 jobs and underpins four out of every five tourism roles.
A recent survey found 92pc of members see a VAT cut as necessary for growth. Hospitality Ulster has joined the wider campaign backing calls for a reduction in the hospitality VAT rate to 10pc to protect jobs and keep prices affordable. Industry surveys show that 86pc of operators cite VAT as a primary concern while 71pc point to high business rates.
Neill has called on the Northern Ireland Executive to deliver rates reform such as shifting from a square-footage model to a turnover or profitability-based system. He maintains that reducing VAT and fixing the business rates system will provide vital breathing space for businesses to invest in premises, protect local jobs and keep consumer prices competitive.
