Ulster Unionist Economy Spokesperson Diana Armstrong MLA has called for a reversal to employer National Insurance Contribution (NIC) changes, following new statistics revealing that 27% of hospitality businesses are now operating at a loss. She added that the increased NIC burden, combined with high VAT rates, is pushing local hospitality firms to the brink.

The research, published yesterday, was conducted last month by industry bodies including Hospitality Ulster, UKHospitality, the British Institute of Innkeeping, and the British Beer & Pub Association.

Ms Armstrong said, “When the Westminster government announced changes to the way employers pay National Insurance, there was an immediate outcry from the business community in Northern Ireland, who feared for their livelihoods and the viability of their businesses.

“These newly published statistics show the stark reality on the ground, laying bare the serious challenges these businesses face. Not only are 27% of hospitality businesses operating at a loss, but just 6% of respondents reported making more profit at this stage in 2025 compared to 2024.

“Worryingly, 45% of respondents said they had cancelled planned investments in anticipation of rising costs, raising serious concerns about the government’s broader plans for tourism and business growth.

“In the chamber, I have been highlighting the real stories of local hospitality businesses in my constituency, who are genuinely fearful for the future. These businesses often rely on younger, part-time workers, and the NIC changes are pushing their costs beyond sustainable limits, especially as they already struggle with rising goods prices.

“This is compounded by the hospitality VAT differential we face here, which often drives tourists across the border to hotels and restaurants offering more competitive pricing.

“The onus is now on Westminster to reverse these measures and take meaningful action to restore confidence in Northern Ireland’s hospitality sector.”