Written Question·Treasury·UIN 92165
VAT: Northern Ireland
Tabled: 18 November 2025
Answered: 24 November 2025
Question
Claire Hanna
Social Democratic & Labour Party — Belfast South and Mid Down
To ask the Chancellor of the Exchequer, with reference to to clause 32 in the Windsor Framework relating to VAT and excise, what assessment she has made of the potential merits of reducing the VAT rate in Northern Ireland.
Answer
Dan TomlinsonVAT is a broad-based tax on consumption, and the 20 per cent standard rate applies consistently across the UK to most goods and services. VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations.