The government last week announced a temporary cut to VAT for tickets to family attractions and soft play this summer, with the rate reduced to 5 percent between 25 June and 1 September.
The initiative, which also includes children’s meals, follows months of campaigning by bodies such as UKHospitality and Bacta, and could lead to a significant boost in seasonal footfall.
“Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British summer savings will support families with the little treats in life while boosting business,” said chancellor Rachel Reeves.
“I know the cost of living is still a number one concern for households. Our economic plan is the right one, supporting families and businesses and building a stronger and more secure Britain.”
UKHospitality welcomed the move as “a positive step,” and recognition from the government that a lower rate of VAT for hospitality is “the quickest and simplest way to lower prices and boost consumer confidence.”
“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,” said chair Kate Nicholls.
Temporary VAT cut “a definite win for the industry” but government urged to go further
The hospitality and leisure sectors have expressed their support for the chancellor’s decision to temporarily reduce VAT on family attractions and soft play this summer.
Trade organisations including Bacta and BALPPA highlighted the significant benefits the cut would bring to members, but urged ministers to enact long-lasting change.
“A definite ‘win’ for the industry,” said a spokesperson for BALPPA. “This is a campaign that BALPPA has worked hard to deliver over many years so we are delighted this scheme will positively impact our members.”
Bacta president Joseph Cullis hailed the cut as a “significant intervention” from government, which acknowledges the pressures currently facing the visitor economy and leisure sectors.
“It also demonstrates that VAT is increasingly being viewed by Treasury as a method of supporting consumer spending and domestic tourism.”
“Alongside others in the wider tourism and hospitality sector, we welcome the fact that government has recognised the importance of supporting family leisure and domestic tourism over the summer period, but much more needs to be done.”
Natalie Lewis, director Dynamic HR Services, was less supportive,however, saying “let’s stop pretending these sorts of announcements are some bold rescue package for working Britain whilst businesses are quietly drowning under wave after wave of additional cost and admin.”
