THE LEADING PUBLICATION FOR THE HOSPITALITY SECTOR & LICENSED TRADE Issue 317
www.CLHNews.co.uk
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Government Announces Temporary “Hospitality VAT Giveaway”... But Wider Support Needed
The Bowden Group
EKE EQUIPMENT LIMITED
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Chancellor Rachel Reeves has unveiled a temporary VAT reduction spanning large parts of the hospitality, leisure and licensed on-trade sectors, cutting the standard 20% rate to 5% for a ten-week window this summer — a move that will directly affect pricing in restaurants, cafés, theme parks, soft play venues, cinemas and theatres. Delivering a statement to the House of Commons on Thursday, Ms Reeves confirmed the reduction forms part of a broader cost-of-living package tied to ongo-
ing economic pressures stemming from the Iran war. The measure, branded by the Treasury as the “Great British Summer Savings” scheme, will run from 25 June to 1 September 2026. The VAT rate on eligible activities will be cut from 20% to 5% and applies across England, Wales, Scotland and Northern Ireland.
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