To ask the Minister of Finance whether he has made deputations to HM Treasury regarding reducing the VAT rate for hospitality businesses in Northern Ireland, given the increase in running costs.

VAT is an Excepted Matter and responsibility for any reduction in VAT is an issue for the British Treasury to decide upon.

Over recent years, my Department has repeatedly raised with the British Treasury, the negative impact the higher level of VAT on tourism & hospitality is having locally compared to the lower rate that applies in the South. My officials continue to highlight the adverse impacts of the taxation system locally in their regular meetings with Treasury counterparts.

At our first meeting, I pressed the Chief Secretary to the Treasury that a new Fiscal Framework, which provides funding based on need and a basis for increased fiscal powers for the Executive, should be an immediate priority. This will better enable the Executive to sustainably fund public services and provide support for both citizens and businesses during the ongoing cost of living / business crisis.