Reeves’s tax cut on children’s meals a political ‘soundbite’, say restaurateurs
Summary
Chancellor Rachel Reeves has temporarily cut the tax on children’s meals in restaurants from 20% to 5% for the summer to help families and support the hospitality sector. However, some restaurant owners say the cut is too small to make a real difference, while others plan to lower children’s meal prices during this time.Key Facts
- The VAT (value-added tax) on children’s meals in restaurants in England is cut from 20% to 5% between June and September.
- This measure is part of a wider "Great British summer savings" campaign to ease the cost of living, which includes free bus travel for under-16s.
- Some restaurateurs say children’s meals are often already sold at a loss, so the tax cut may not reduce prices much.
- Tim Martin, owner of Wetherspoons pubs, plans to lower his children’s menu prices over the summer in response to the VAT cut.
- UK VAT on restaurant food is 20%, higher than the European average of about 12% and much higher than Italy’s 10%.
- Hospitality businesses want a permanent VAT cut to match supermarket rates and other European countries.
- Industry group UKHospitality says a lower VAT could reduce prices, control inflation, increase demand, and create jobs.
- Some restaurateurs describe the tax cut as symbolic and call for broader, longer-term support for the hospitality sector.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.