Government cuts VAT to 5% for kids' meals

The government has announced it will reduce the rate of VAT to 5% for children’s meals in pubs and 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 25 June to 1 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. 

Free bus travel for children aged 5 to 15 in England will also be introduced in August.

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," says 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.

"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."

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