Reeves’s tax cut on children’s meals a political ‘soundbite’, say restaurateurs

Key Takeaways

• Cutting tax on children’s meals is a political “soundbite” that will make little difference to families or businesses, restaurateurs have said.
• This week, Rachel Reeves, the chancellor, announced a temporary reduction in VAT on the children’s menu in restaurants from 20% to 5% between June and September, in order to help families with the cost of living crisis and offer a boost to the hospitality sector.
• It is part of a package including free bus journeys for under-16s in England in August and cuts to import taxes on some basic foods under a “Great British summer savings” campaign.
• But there are questions over how much of the savings will be passed on to consumers, with many restaurateurs claiming children’s food is often already sold at a loss.
• Will Murray, the owner of London restaurant Fallow, serves up a children’s menu featuring pizza, cheeseburgers and grilled fish from between £5 and £10.