The UK Government has announced a temporary reduction in VAT to 5% for children's meals, family admissions to visitor attractions, and children's soft play, effective from 25 June to 1 September. UKHospitality, a leading trade body, has welcomed this move as a beneficial measure for families and a recognition of the advantages a lower VAT rate can bring to consumers and businesses. However, the organisation is calling for a more comprehensive VAT reduction across the entire hospitality sector.

Kate Nicholls, Chair of UKHospitality, highlighted the significance of the VAT cut, stating, "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." She further encouraged the Government to consider extending the reduced rate to include accommodation, addressing one of the major expenses of family holidays.

Nicholls also pointed out that the UK’s current 20% VAT rate is the second highest in Europe, with competitors like Germany and France benefiting from significantly lower rates. "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," she added, urging the Government to adopt a bold approach.

UKHospitality continues to advocate for a VAT reduction to align the UK with European standards, potentially enhancing the sector's competitiveness and economic contribution

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