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Hospitality leaders urge permanent VAT cuts as summer discount scheme ends

UK tourism and restaurant operators are calling for extended or permanent tax relief following the conclusion of a £300m temporary initiative.

Updated Sep 1, 2026 · 06:25 UTC1 reports

The short version

  • Tourism and hospitality businesses in Devon and Cornwall are asking the government for broader and permanent VAT cuts as the 10-week Great British Summer Savings scheme ends on 1 September.
  • The £300m government initiative temporarily lowered VAT from 20% to 5% on children's meals, venue tickets, and family attractions to lower costs for consumers over the summer.
  • Industry reactions remain mixed: while some businesses reported modest increases in footfall, others cited poor government publicity and technical difficulties implementing the short-term change.
  • The Treasury defended the program's success in boosting local economies, but industry representatives are pressing for relief to extend through autumn and beyond.

Key facts

  • The government's £300m Great British Summer Savings program temporarily reduced VAT from 20% to 5% on children's meals and family attraction tickets from late June until 1 September.[BBC News]
  • Industry figures, including UK Hospitality CEO Allen Simpson and Visit Devon director Sally Everton, are advocating for broader and permanent VAT reductions across the sector.[BBC News]
  • Some business owners reported positive results, such as lower ticket costs leading to slightly higher customer numbers and increased secondary spending.[BBC News]
  • Other operators criticized the policy's execution, citing a lack of publicity, rushed implementation, and operational difficulties, with some choosing not to lower prices to offset rising operational costs.[BBC News]
  • A Treasury spokesperson stated that the program successfully increased visitor numbers, supported family spending, and strengthened local economies.[BBC News]

What remains uncertain

  • Whether the government will consider expanding or extending temporary tax relief into the autumn half-term period remains unconfirmed.[BBC News]

Sources