The UK’s standard VAT rate of 20 per cent is close to the OECD average of 19.3 per cent and is forecast to raise almost £190 billion in 2026/27.VAT is a broad-based tax on consumption, and the standard rate applies to most goods and services. VAT on services, including hospitality, does not fall within the scope of the Windsor Framework.

There are no current plans to introduce regionally differentiated VAT rates for hospitality, which would add complexity to the tax system.

The Government has announced the Great British Summer Savings scheme. This provides a temporary reduction in VAT from 20 per cent to 5 per cent from 25 June to 1 September 2026 on eligible children’s meals, family leisure tickets and admission to summer attractions across England, Wales, Scotland and Northern Ireland, providing targeted support for families and for hospitality and tourism businesses across the UK.

The UK’s standard VAT rate of 20 per cent is close to the OECD average of 19.3 per cent and is forecast to raise almost £190 billion in 2026/27.VAT is a broad-based tax on consumption, and the standard rate applies to most goods and services. VAT on services, including hospitality, does not fall within the scope of the Windsor Framework.

There are no current plans to introduce regionally differentiated VAT rates for hospitality, which would add complexity to the tax system.

The Government has announced the Great British Summer Savings scheme. This provides a temporary reduction in VAT from 20 per cent to 5 per cent from 25 June to 1 September 2026 on eligible children’s meals, family leisure tickets and admission to summer attractions across England, Wales, Scotland and Northern Ireland, providing targeted support for families and for hospitality and tourism businesses across the UK.

The UK’s standard VAT rate of 20 per cent is close to the OECD average of 19.3 per cent and is forecast to raise almost £190 billion in 2026/27.VAT is a broad-based tax on consumption, and the standard rate applies to most goods and services. VAT on services, including hospitality, does not fall within the scope of the Windsor Framework.

There are no current plans to introduce regionally differentiated VAT rates for hospitality, which would add complexity to the tax system.

The Government has announced the Great British Summer Savings scheme. This provides a temporary reduction in VAT from 20 per cent to 5 per cent from 25 June to 1 September 2026 on eligible children’s meals, family leisure tickets and admission to summer attractions across England, Wales, Scotland and Northern Ireland, providing targeted support for families and for hospitality and tourism businesses across the UK.

I have to apologise to the noble Lord, I am afraid, because I do not know the answer to his question about the applicability of this relief to Northern Ireland under the Windsor Framework. I will investigate that and write to him.

The Windsor Framework ensures Northern Ireland benefits from the same VAT changes as the rest of the UK. That includes the zero-rate on Energy Saving Materials and the newly expanded zero-rate on Women’s Sanitary Products.

The arrangements in Northern Ireland under the Windsor Framework guarantee Northern Ireland’s position within the UK’s VAT and excise area, while still maintaining frictionless arrangements for those businesses trading with the EU - granting Northern Ireland businesses the ability to benefit from new UK changes and ensuring that Northern Ireland households can benefit from the UK’s Brexit freedoms.

The freedoms secured under the Windsor Framework have already delivered benefits for NI people and businesses, including: the application of zero rates on the installation of energy-saving materials; the rollout of new alcohol duty reforms across the whole UK; and the UK-wide application of the changes agreed at Autumn Statement, such as the removal of VAT on period underwear.

The Treasury discussed the Spring Statement measures with the Northern Ireland Executive on the day of the Statement.

The Treasury regularly discusses fiscal event measures with stakeholders, including the devolved administrations. There will be and is ongoing engagement with the Northern Ireland Civil Service as required.

Under the Northern Ireland Protocol, EU VAT rules concerning goods – which restrict the introduction of new zero rates - continue to apply in Northern Ireland (NI).

We have been clear that a constructive solution must be found that ensures the whole of the UK can benefit from these reforms. The Government will raise this with the European Commission as soon as possible, within wider discussions regarding the NI Protocol.

In the interim, the Northern Ireland Executive will receive a Barnett share of the value of this relief.

Under the Northern Ireland Protocol, EU VAT rules concerning goods – which restrict the introduction of new zero rates - continue to apply in Northern Ireland (NI).

We have been clear that a constructive solution must be found that ensures the whole of the UK can benefit from these reforms. The Government will raise this with the European Commission as soon as possible, within wider discussions regarding the NI Protocol.

In the interim, the Northern Ireland Executive will receive a Barnett share of the value of this relief.

The number of successful entrants to the agricultural flat rate scheme for each year since its commencement in 1993 to 2017 is as follows:

These figures are based on management information and have not been assured to the standard of Official Statistics.

The following table lists the known exclusions from the agricultural flat rate scheme by calendar year:

These figures are based on management information and have not been assured to the standard of Official Statistics.

Figures are not available for the period covering 1993-2010.

The government receives representations on a number of issues, including the VAT treatment of defibrillators.

We recognise that provision of defibrillators could help those who have a cardiac arrest outside a hospital setting. The government maintains several VAT reliefs to aid purchases of defibrillators, including purchases made by local authorities and those made through voluntary contributions which are donated to eligible charities or the NHS.

The current framework of European law limits further VAT reliefs being applied to defibrillators. Our future relationship with the EU, including on VAT, is subject to negotiation. Any future decisions on VAT will continue to be taken in line with the normal Budget process.

Following the Chancellor’s announcement in the Autumn Statement that this government will refund the VAT that hospice charities incur, the government will now engage with the hospice sector, including those in Northern Ireland, in taking this policy forward to implementation.

The UK’s current VAT return and associated procedures are supported by businesses. As the Office for Tax Simplification said in its recent report –Review of the Competitiveness of the UK Tax Administration – “The UK’s VAT return always wins praise for simplicity…”. The Government is committed to retaining that simplicity and continues to press for that in the EU.

I regularly hold discussions with Treasury Ministers, including the Chancellor of the Exchequer, on a wide range of economic issues that impact on Northern Ireland. As set out in our joint economic pact signed in June 2013, ‘Building a Prosperous and United Community’, the Government will continue to work with the Executive to encourage visitors to Northern Ireland.

I regularly hold discussions with the Northern Ireland Executive and Treasury Ministers on a wide range of issues. Measures to provide a boost to tourism in Northern Ireland were included in the economic pact, Building a Prosperous and United Community, which was agreed between HM Government and the Northern Ireland Executive.