Economy Minister Dr Caoimhe Archibald has called on local firms to pass a newly announced, targeted VAT reduction on to consumers to help mitigate ongoing cost-of-living pressures.

The Minister made these remarks following an announcement from the Chancellor in Westminster today regarding a temporary reduction in the VAT rate for specific summer attractions, which will drop from 20% to 5% during the summer holidays.

While welcoming the initiative, the Minister used the opportunity to repeat her request for a dedicated, reduced VAT pilot scheme specifically for hospitality businesses operating in Northern Ireland. The Minister stated: "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."