VAT reduction must go further - Minister Archibald

Date published: 21 May 2026

The Minister’s comments follow the announcement from the Chancellor today in Westminster that a temporary cut in the rate of VAT on some summer attractions from 20% to 5% will apply over the summer holidays.  

While welcoming the move, the Minister also repeated her call for a reduced VAT pilot for hospitality businesses in Northern Ireland.

The Minister said: 

“I welcome the Chancellor’s announcement of a temporary VAT cut on some family expenses this summer.  This will provide a timely boost for households facing ongoing cost-of-living pressures.  I would urge our local businesses to ensure that they pass on these savings to consumers, ensuring that families here can fully benefit from this measure over the summer months, which we know can be an expensive and worrying time for families to navigate.

“However, this short-term intervention does not address the longstanding VAT disparity faced by our broader local hospitality industry compared to the south.  

“Along with the Finance Minister, I wrote to the Treasury earlier this year to ask that it considers a reduced VAT pilot scheme for hospitality within the north.  Today’s announcement shows that targeted adjustments to VAT can be made when the political will is there and I urge the Chancellor to consider options for more meaningful and lasting reform.”