Question to the HM Treasury:

To ask His Majesty's Government what discussions have been held with the Northern Ireland Executive about differential VAT rates for areas of the UK which are in direct competition with hospitality businesses in another jurisdiction.

The UK’s standard VAT rate of 20 per cent is close to the OECD average of 19.3 per cent and is forecast to raise almost £190 billion in 2026/27.VAT is a broad-based tax on consumption, and the standard rate applies to most goods and services. VAT on services, including hospitality, does not fall within the scope of the Windsor Framework.

There are no current plans to introduce regionally differentiated VAT rates for hospitality, which would add complexity to the tax system.

The Government has announced the Great British Summer Savings scheme. This provides a temporary reduction in VAT from 20 per cent to 5 per cent from 25 June to 1 September 2026 on eligible children’s meals, family leisure tickets and admission to summer attractions across England, Wales, Scotland and Northern Ireland, providing targeted support for families and for hospitality and tourism businesses across the UK.