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
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