Government cuts VAT to 5% for kids' meals
The VAT cut is a positive step for family days out, says UKHospitality.
The government has announced it will reduce the rate of VAT to 5% for children’s meals in restaurants this summer. It will also apply the cut for family admissions to visitor attractions and children’s soft play this summer, with the reduction taking effect from 25th June to 1st September.
Children’s meals for consumption in hospitality venues are eligible where served from a dedicated children’s menu and marketed, presented and priced as such. Westminster has said the move will help families afford "life’s little treats", and that it will work with eligible businesses to get the scheme up and running.
Trade body reaction
UKHospitality, which has long campaigned for a cut to VAT for the entire hospitality sector, says the move was recognition from the government that a lower rate of VAT delivers immediate benefits for consumers, businesses and the economy. It says the VAT cut was a "positive step" for families and urged the government to now take a bold step by cutting VAT for the entire hospitality sector.
"It’s good to see the government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence," said Kate Nicholls, chair of UKHospitality. "A 5% rate of VAT for family admissions to visitor attractions, children’s meals and soft play is a positive step to help families enjoy a great British break this summer.”
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