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While the Government guidance states the reduction applies to ‘catering services by a restaurant, café or similar establishment for consumption on the premises’, the Treasury confirmed to The Morning Advertiser this also includes pubs.
It also this is defined as meals served from a children’s menu and marketed presented and priced as children’s meals.
The reduction runs from 25 June to 1 September and applies in England, Wales, Scotland and Northern Ireland.
In addition, the VAT cut also includes children’s and family tickets for cinema, theatre, exhibitions, shows and concerts as well as on admission tickets for children and adults to attractions such as amusement parks, fairs, circuses, museums, zoos, adventure parks, soft play and observation attractions.
Affordable trip
The British Beer & Pub Association (BBPA) CEO Emma McClarkin said: “We want to keep a trip to the pub affordable and this move will mean more families can gather together, enjoy a meal out and support their local.
“When you help out business, you can help out the customers, which is why we urgently need VAT to be permanently lowered for all of our sector all year round.”
Fellow trade body UKHospitality (UKH) welcomed the step and echoed the BBPA’s call for a permanently lower rate of VAT.
UKHospitality chair Kate Nicholls 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.”
Biggest lever
She highlighted how compared to other European countries, the UK is an “outlier” in terms of its VAT rate.
Nicholls added: “This should now be viewed by [the] Government as a down payment 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.”
