Chancellor Rachel Reeves has been urged to make a temporary VAT cut on children's meals permanent, as restaurateurs dismiss the measure as a political 'soundbite' that will have little impact. The reduction from 20% to 5% on children's menu items, running from June to September, is part of a 'Great British summer savings' package aimed at easing cost-of-living pressures.
Industry figures argue the cut is insufficient, noting that many restaurants already sell children's meals at a loss. Will Murray, owner of London's Fallow restaurant, said: 'It's such a small soundbite that won't make any difference. Most kids' food is already discounted at the cost of the restaurant anyway.' He called for broader support, such as help with childcare costs.
However, Tim Martin, founder of Wetherspoons, plans to pass on the saving to customers. 'We will reduce prices for children's meals during this time and it will be appreciated by parents and families,' he said. Martin also reiterated calls for VAT equality with supermarkets, which would mean a permanent reduction.
The hospitality sector has long lobbied for lower VAT rates, pointing out that the UK's 20% rate is among the highest in Europe, where the average is around 12%. Restaurateur Daniel Crump described the temporary cut as 'symbolic' and urged the government to go further.
UKHospitality chair Kate Nicholls said the measure should be seen as a 'downpayment' on a wider VAT reduction for the entire sector. 'Our biggest competitors benefit from VAT rates that average about 10%, and the UK is a clear outlier,' she said, urging the government to be bold and cut VAT permanently.
