No conversations with UK over a reduction in VAT rates for hospitality businesses planned

Treasury minister says rates have already been agreed

The treasury minister's ruled out having any conversations with the UK government about reducing the rate of VAT paid by hospitality businesses on the Island.

Currently, the VAT rate is 20 percent, which mirrors the UK's as per the agreement between the two jurisdictions.

The figure has been described as 'crippling' for particularly small businesses here, especially when combined with the incoming increase to the minimum wage.

However, Alex Allinson says to change the rates Manx business pay, both governments would need to agree.

Currently the Isle of Man already has a reduced rate of VAT on domestic property renovations and also for the provision of holiday accommodation.

And, having agreed our customs and excise calculations earlier this year, he says he has no plans to initiate any further conversations about any other reductions: