Hospitality wants permanent VAT cut, 'not gimmick'
Summary
Hospitality and tourist businesses in Cornwall want the government to extend and expand a temporary VAT (tax) cut that reduced the cost of family attractions, children’s meals, and cinema tickets over the summer. The VAT reduction from 20% to 5% lasted about 10 weeks and had mixed effects, with some businesses seeing small increases in visitors while others said customers did not know about the scheme.Key Facts
- The UK government offered a summer scheme cutting VAT from 20% to 5% on children’s meals, family attraction tickets, and cinema tickets.
- The scheme lasted for nearly 10 weeks, ending on 1 September.
- Some businesses, like the Big Sheep Farm and Theme Park, saw a slight rise in visitor numbers and lowered ticket prices.
- Other businesses said customers were unaware of the VAT cut despite some advertising.
- Some attractions did not lower prices but kept the saved VAT money to avoid raising prices later.
- Hospitality leaders want the VAT cut to become permanent or extended into the winter months to help struggling businesses.
- A 0% or 5% permanent VAT on family attractions could help businesses invest and keep prices affordable.
- Businesses think the scheme was rushed and not well promoted by the government.
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