Members of the hospitality sector are calling for a permanent reduction in Value Added Tax (VAT) rather than relying on temporary measures. The sector argues that a sustained lower VAT rate would provide greater stability and enable investment for the future.
During the summer months, from the end of June to September 1, a temporary VAT reduction was implemented for children's meals served in restaurants, as well as for children's and family tickets at various attractions including cinemas, shows, exhibitions, and outdoor activities. While this scheme saw a slight increase in visitor numbers at some establishments, feedback suggests it was not widely publicized.
Tara Stapley, general manager of The Big Sheep Farm and Theme Park, reported a modest rise in attendance, attributing it partly to the summer savings initiative. Her business adjusted ticket prices and expanded its children's meal offerings. "People coming have been quite pleasantly surprised by our ticket prices and we're saying we're part of the summer savings scheme and they have been very grateful for that," Stapley stated. She expressed strong support for extending the scheme, particularly through the October half term and Halloween, noting that "days out can be expensive." She added that any government extension would be a significant help to both businesses and visitors.
Keith Southwell, chair of the Cornwall Association of Tourist Attractions, initially viewed the temporary scheme positively. However, he noted that some attractions opted to reinvest the savings into their facilities rather than reducing prices. Southwell advocates for a permanent VAT rate of 0% or 5% for attractions, arguing that it "would allow all of us to invest for the future." Matt Bunt, head of marketing at Lappa Valley, echoed the sentiment that families benefit from keeping more money but criticized the rushed and poorly publicized nature of the government's policy.
The sector's request for a permanent VAT cut aims to provide a more stable economic environment, allowing businesses to plan for long-term improvements and maintain affordability for families seeking leisure activities.