Reeves's tax cut on children's meals a political soundbite', say restaurateurs

A temporary VAT cut on children’s restaurant meals will reduce the VAT rate from 20% to 5% between June and September. The measure is intended to help families facing the cost of living crisis and to provide a boost to the hospitality sector. The package also includes free bus journeys for under-16s in England in August and cuts to import taxes on some basic foods. Restaurateurs question whether savings will reach consumers, arguing that children’s meals are often already sold at a loss or heavily discounted. Some restaurant owners say the VAT change would not cover existing shortfalls. Others plan to reduce children’s menu prices during the summer. VAT on food and drink for restaurants is described as among the highest in Europe, and the hospitality sector has long sought alignment with lower European rates.

"Tim Martin, the founder and chair of the Wetherspoons pub chain, does now plan to cut the cost of the kids' menu throughout summer. The chain serves children's food including chicken nuggets and sausage and mash from 4.99 to 5.75. We will reduce prices for children's meals during this time and it will be appreciated by parents and families, he said. The hospitality sector has long called for VAT rates on food and drink to be cut in line with other European countries."

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