Stormont Ministers back joint call for VAT reform

Finance Minister John O'Dowd, Economy Minister Caoimhe Archibald, N.I Food-To-Go Chief Executive Michael Henderson, Hospitality Ulster Chief Executive Colin Neill.

The Northern Ireland Food To Go Association (NIFTGA) and Hospitality Ulster have welcomed a positive and constructive meeting with Stormont Ministers, where both Ministers listened carefully to the concerns raised by the sector and fully backed the case for VAT reform.

The meeting took place on Tuesday 13 January and was attended by John O’Dowd, Minister for Finance, and Caoimhe Archibald, Minister for the Economy. The two representative bodies were led by Michael Henderson, Chief Executive of the Northern Ireland Food To Go Association, and Colin Neill, Chief Executive of Hospitality Ulster.

Discussions focused on the growing competitive disadvantage faced by Northern Ireland food to go and hospitality businesses because of VAT policy divergence with the Republic of Ireland, where significantly lower VAT rates apply to food service and hospitality. Both organisations highlighted how this divergence is increasingly distorting competition, particularly in border areas, and placing local businesses at a structural disadvantage.

Ministers acknowledged the pressures facing the sector and listened to detailed evidence on how the 20% VAT rate on hot takeaway food is undermining competitiveness, squeezing margins and threatening long-term viability. Both Ministers expressed their support for the principle of VAT reform and agreed that action is needed to address the imbalance. As a result of the meeting, Ministers confirmed that a further engagement with HM Treasury will be sought to press the case for VAT reform and to explore potential pathways for change.

Michael Henderson, Chief Executive of the Northern Ireland Food To Go Association, said: “This was a very positive and constructive meeting. Ministers listened carefully to the concerns we raised and clearly recognise the real and growing impact VAT divergence with the Republic of Ireland is having on our sector.

“We were encouraged by the clear support shown for VAT reform and by the commitment to engage with HM Treasury. VAT is a policy-driven cost that businesses cannot absorb or mitigate, and addressing this imbalance would provide meaningful support to food to go businesses across Northern Ireland.”

Colin Neill, Chief Executive of Hospitality Ulster, added: “We welcome the Ministers’ engagement and their backing for reform. The VAT disparity with the Republic of Ireland is increasingly unsustainable for hospitality businesses, particularly in border regions where competition is immediate and intense.”

“This meeting represents an important step forward. A move towards a more competitive VAT environment would provide immediate relief, support jobs and help safeguard hospitality and food service businesses that are central to local economies and communities.”

Both organisations welcomed the commitment to further engagement and reiterated their intention to continue working constructively with Ministers, the Executive, MLAs and officials to press for VAT reform and practical outcomes for the sector.