UK Cuts VAT to 5% on Family Attractions and Kids' Meals, Costing £300 Million
Updated
Updated · bbc.co.uk · Jun 24
UK Cuts VAT to 5% on Family Attractions and Kids' Meals, Costing £300 Million
3 articles · Updated · bbc.co.uk · Jun 24
Summary
A temporary UK VAT cut takes effect on June 25, lowering tax from 20% to 5% on theme parks, zoos, museums, cinemas and children's meals until Sept. 1.
Rachel Reeves said the £300 million measure is aimed at easing summer holiday costs for families, alongside free bus travel in England for children aged five to 15 in August.
Businesses can decide whether to pass on the tax break, though Wetherspoons, Greene King and Nando's said they would cut prices while others warned the savings may barely reach customers.
Helen Miller of the Institute for Fiscal Studies estimated the policy would save the average UK household about £10, and charities and families said it falls short of broader cost-of-living pressures.
Hospitality firms also warned the short-lived scheme could impose extra costs through till reprogramming, menu changes and complex compliance rules, especially for smaller operators.