The VAT cut is a positive step for family days out, and the Government should now take a ‘bold’ step to cut VAT for the entire hospitality sector.
The Government has announced it will reduce the rate of VAT to 5% for children’s meals, family admissions to visitor attractions and children’s soft play this summer, with the cut taking effect from 25 June to 1 September.
UKHospitality, which has long campaigned for a cut to VAT for the entire hospitality sector, said the move was recognition from the Government that a lower rate of VAT delivers immediate benefits for consumers, businesses and the economy.
It said 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.
Our response
Kate Nicholls, Chair of UKHospitality, said: “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.
“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.
“If there is scope to further support families by including accommodation in this reduced rate, I would encourage the Chancellor to do so to help tackle one of the biggest costs of a family holiday.
“This should now be viewed by Government as a downpayment on a wider shift to a lower VAT rate for the entire hospitality sector, to bring us in line with Europe. Our biggest competitors benefit from VAT rates that average around 10%, and can be as low as 7%, and the UK is a clear outlier.
“As the Government has recognised today, VAT is the single biggest lever it can pull to lower prices, tackle inflation, drive demand, boost spending, generate growth and create new jobs. I would urge it to be bold and cut VAT for the entire hospitality sector.”



