VAT rate cut would be major boon forCoC pubs and hotels

He said: “The hospitality and tourism industry is critical for our local economy - not least during this year’s City of Culture.

“Hotels, pubs and restaurants are central to the economic and social life in Derry and across the North. However in the current climate many of these local businesses are facing an extremely challenging economic environment.”

The SDLP tabled a parliamentary motion at Westminster this week calling on the Chancellor of the Exchequer George Osborne to reduce the VAT rate for the hospitality and tourism sector.

Mr Durkan said: “It would create jobs and stimulate business, helping our tourism and hospitality sector to move forward and encourage more visitors to come to Derry every year.

“Offering VAT relief would also encourage people across the island of Ireland to travel into the sterling zone and take advantage of the many opportunities Derry has to offer

“We are looking forward to the opportunities raised by this year’s City of Culture which will be a springboard for long-lasting economic benefit to the city.

“However, we now need a concerted effort from the Chancellor on VAT reduction if we are to properly capitalise on such a pivotal year for Derry in what should be one of the strongest sectors of our local economy.”