Question to the HM Treasury:

To ask Her Majesty's Government, further to the Written Answer by Lord Agnew of Oulton on 22 September (HL7928), whether value added tax rates in Northern Ireland have the potential to rise above value added tax rates in Great Britain after (1) the end of the transition period, and (2) the Protocol on Ireland/Northern Ireland and any new state aid rules are operational.

As described in my response of 22 September (HL7928), the Northern Ireland Protocol ensures that Northern Ireland remains part of the UK’s VAT system. Its provisions on VAT rates will provide the Government with the flexibility to introduce certain new zero and reduced rates in Northern Ireland.

It will allow the Government to introduce a zero rate for women’s sanitary products across the UK from 1 January 2021. Beyond that, the Government has no current plans to introduce new zero or reduced rates after the Northern Ireland Protocol comes into effect.