Businesses: Northern Ireland
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of a reduced rate of VAT for businesses in Northern Ireland on economic growth and competitiveness; and whether her Department has considered piloting such a measure in Northern Ireland.
Answered by Dan Tomlinson
VAT operates on a UK-wide basis and is a broad-based tax on consumption with the 20 per cent standard rate applying to most goods and services. VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26.
Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
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