UK looks to boost tourist spots with temporary summer Vat cut

A temporary VAT reduction will lower prices for tourist venues over the summer, with the rate cut to 5% from 20% between June 25 and September 1. The change applies to attractions such as theme parks, zoos, and museums, and also covers children’s tickets for cinemas and theatres and children’s restaurant meals. Free bus travel for children under 15 will be provided in August. The measures are intended to help families and support the hospitality sector amid economic pressure linked to higher energy prices after strikes on Iran. Additional steps include suspending import tariffs on many food products, with an expectation that supermarkets pass savings to customers. Funding will come from accelerating planned changes to taxation of international oil and gas groups.

"Ms Reeves unveiled a temporary cut in the rate of VAT for attractions including theme parks, zoos and museums to 5pc from 20pc between June 25 and September 1. The tax cut will also apply to children's tickets for cinemas and theatres as well as their restaurant meals, and Ms Reeves also said bus travel would be free for children under 15 in August. She told parliament that the move would "help families and support our hospitality sector"."

"Kate Nicholls, the chair of industry group UKHospitality, welcomed the move "as the quickest and simplest way to lower prices and boost consumer confidence", and urged that it be extended to holiday accommodation and eventually turned into a permanent tax cut for the whole sector. The measures come as energy prices have risen following US-Israeli strikes on Iran in February, adding pressure to efforts to ease the cost of living."

"As part of the package of measures, Ms Reeves also said Britain would suspend import tariffs on dozens of types of food products including biscuits, chocolate and nuts. "I expect supermarkets to pass these savings (from tariff reductions) on in full to their customers," Ms Reeves said after a row over whether retailers would face price caps on key goods, adding she urged supermarkets to "do all they can to keep prices low"."

"She said the measures would be paid for by an acceleration of planned changes to the way Britain taxes international oil and gas groups. Britain's regulated utility bills and previously announced measures to lower energy costs for households helped to keep a lid on inflation in April, but price growth "

Read at Irish Independent