High Street Retailers

Tom Hayes Excerpts

Wednesday 5th February 2025 Westminster Hall

[Mr Campbell]

I do not know those organisations, but I presume, on the basis of the hon. Lady’s endorsement, that they are very worth while and worth defending.

This week—this is a very topical issue—the Government in the Irish Republic have indicated that they will look at VAT terms. Of course, Northern Ireland is in very close proximity to the Republic. Here in the UK, VAT is charged at 20%, and in the Irish Republic it is 13%. That puts our high street retailers, particularly those in the hospitality sector, at a bit of a disadvantage. The Government in the Republic have indicated that they will reduce their rate yet again from 13% down to 9%, which means that the disadvantage gap for Northern Ireland retailers and consumers will widen considerably.

The Minister will obviously not be able to respond immediately. If he does, I would be very surprised. I would welcome his response if he were able to say, “I’m going to go to the Treasury and get special dispensation for Northern Ireland hospitality on the high street, with a 5% introductory rate for the next four years of this Parliament”—I think that would be an excellent idea that would get support across the divide in Northern Ireland. But I hope he will have some discussion with his colleagues to see what can be done. We are at an acute disadvantage, and it is most heavily felt. In the past couple of days, hotel managers and hospitality retailers have been on local radio saying, “Our opportunity for business is diminishing even more as a result of this decision to reduce VAT in the adjoining businesses, just a few miles across the border, down from 13% to 9%. We are struggling with charging a 20% rate.” So a 5% rate would be very welcome.

In conclusion—

[Tom Hayes (Bournemouth East) (Lab)]

It is funny how saying “In conclusion” gets our attention. I thank the hon. Gentleman for giving way. If he wants independent stores, fantastic cafés or great restaurants, I can heartily recommend the high streets in Boscombe, Pokesdown, Southport and Tuckton. I could go on, but I will not. I particularly recommend the fantastic vintage store In Off the Far Post in Boscombe. Would the hon. Member agree that we need the Government to support our high streets so that we have more independent shops and fewer candy shops and vape shops, which are often so brightly lit that we can almost see them from space?

[Mr Gregory Campbell]

I agree with what the hon. Member said in his brief tour of his constituency, which I am sure is very enticing to those who have not been. We need support, but we need more than just more of the same. We need to have a structured look at what the high street will look like.