More than 200 hospitality and food service businesses have closed across Northern Ireland since the start of the year, according to an industry association, as it threw its support behind a proposal to cut VAT to 10 per cent.

The Northern Ireland Food to Go Association (NIFTGA) says independent cafés, coffee shops, delis and takeaways are contending with higher wage bills, increased National Insurance contributions, rising energy and insurance costs, and weaker consumer spending.

South Antrim MP Robin Swann has tabled an Early Day Motion in the House of Commons urging the Treasury to introduce a pilot scheme reducing the hospitality VAT rate in Northern Ireland to 10 per cent. The motion does not trigger a debate or vote but places the issue on the parliamentary record to build pressure.

Michael Henderson, chief executive of the NIFTGA, said the association had been campaigning for a VAT pilot for a considerable period and welcomed the MP's support. He argued that Northern Ireland's proximity to the Republic of Ireland, where hospitality businesses benefit from a lower VAT rate, creates a competitive imbalance for operators near the border, affecting investment and consumer spending patterns.

The motion states that hospitality employs thousands in Northern Ireland and plays a key role in sustaining town centres and local communities. Supporters say a lower VAT rate would give businesses room to invest, retain staff and remain competitive.

Henderson said small businesses did not seek handouts but the opportunity to compete, invest and grow, calling a VAT pilot a practical step toward that goal.

Whether the Treasury will consider a Northern Ireland-specific pilot remains uncertain, but the association argues that rising closures make the debate increasingly difficult to ignore.