{"id":1114399,"date":"2026-07-27T15:39:25","date_gmt":"2026-07-27T15:39:25","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/1114399\/"},"modified":"2026-07-27T15:39:25","modified_gmt":"2026-07-27T15:39:25","slug":"northern-ireland-hospitality-is-left-stuck-in-the-middle-again-the-irish-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/1114399\/","title":{"rendered":"Northern Ireland hospitality is left stuck in the middle again \u2013 The Irish News"},"content":{"rendered":"

For several years, the hospitality industry has asked governments to recognise the extraordinary pressures our sector has faced. <\/p>\n

From the devastating impact of Covid-19 to soaring energy costs, rising labour expenses, increasing national insurance contributions and one of the highest VAT rates in Europe, businesses have endured wave after wave of financial challenge while continuing to support jobs, communities and our visitor economy.<\/p>\n

And while last week\u2019s announcement of 20% reduction in business rates for English pubs, clubs, and music venues represents an encouraging sign that the new Prime Minister understands the issues facing the sector, the fact that this will create no Barnett consequential funding for Northern Ireland is just another example of those of us in this region being stuck in the middle once again.<\/p>\n

Northern Ireland\u2019s hospitality sector is now bordered to the south by a region with a VAT rate of 13.5% on accommodation and 9% on hospitality food compared to our rate of 20%.<\/p>\n

\"Rent<\/a>\"Co<\/a><\/p>\n

And within the UK, we now have our counterparts in England receiving a 20% business rates cut while we enjoy nothing of the same type of relief.<\/p>\n<\/p>\n

We are no strangers to this type of situation; in the Covid era, Barnett consequentials created by hospitality relief in Britain were not ring-fenced for hospitality by the Executive. <\/p>\n

The same was done with funding created by post-Covid rates relief in England. In those cases, cash created by hospitality relief in Britain was used to plug different budget holes in Northern Ireland.<\/p>\n

While that is not the case this time – there is no Barnett consequential created by the UK Government reducing their own rates income – the Executive still needs to step up and support the sector. If hospitality is considered worthy of targeted support elsewhere in the UK, then it should be treated no differently here.<\/p>\n

Hospitality supports around 72,000 jobs, generates billions of pounds in economic activity and underpins four out of every five tourism jobs in Northern Ireland. <\/p>\n

Every pub, restaurant, hotel and caf\u00e9 is also part of a much wider supply chain that benefits local producers, retailers and service providers.<\/p>\n

While the business rates announcement shows that positive change is possible when government listens to the concerns of industry, it also highlights the plight facing all hospitality businesses and the need to reform business rates here before the paused 2026 revaluation is rerun.<\/p>\n

Hospitality remains one of Northern Ireland\u2019s largest employers and a cornerstone of our tourism offering, but will now be stuck in the middle with higher business rates than our colleagues in England and higher VAT rates than our colleagues in the Republic. <\/p>\n

\"ColinColin Neill, chief executive of Hospitality Ulster (Brian Lawless\/PA) <\/p>\n

If the Stormont Assembly and UK Government are serious about supporting economic growth, protecting jobs, and revitalising our high streets and city centres, then they must ensure hospitality receives the targeted support it needs.<\/p>\n