Speaking to Parliament yesterday (8 July), Chancellor Rishi Sunak announced in order to support the hospitality sector, which the chancellor said has been “particularly badly hit”, VAT for the hospitality in food, accommodation and attractions will be cut from 20% to 5% until 12 January.
He said: “The best job programme we can do is to restart these sectors and get restaurants, pubs, hotels and B&Bs bustling again. We are doubling down on our ambition to level up, with better roads, better schools, better hospitals, better high streets.”
Commenting on the latest measures, Janice Gault, CEO of NIHF said: “The Northern Ireland Hotels Federation applauds the Chancellor Rishi Sunak for the measures he has announced today to support the tourism and hospitality sector. This is a real game changer for the industry and will increase our chances of survival.
“Having campaigned for more than a decade, the news of a cut in VAT on food, accommodation and attractions from 20% to 5% until 12 January is a tremendous result for the sector, under the chancellor’s plans to kickstart the economy.”
Gault said the new measures will allow the industry to compete on an all island basis and “it also helps hoteliers address a number of challenges as they return to trading”.
He added: “Hoteliers have opened with a willingness to trade and have shown their commitment to the local economy in doing so. This latest development will create a sustained positive impression on the economy and shows that the hospitality sector is positioned as an engine for growth.”