All the things that should be cheaper from July 15 when VAT is reduced

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Many items are expected to become cheaper today as further VAT reductions take effect.Chancellor Rishi Sunak announced the cuts in his “mini-budget” in order to “move the sectors and protect jobs”.

Speaking in the House of Commons, Sunak said the plan would help protect livelihoods after the economy shrank by 25% in just two months due to Covid-19.

Value added tax will be reduced from 20% to 5% for six months from Wednesday July 15, including food and non-alcoholic drinks.

The reduction will continue until January 12, 2021 and will include take-out meals and meals out as well as hotel, B&B and camping stays.

“These changes are being made as an urgent response to the coronavirus pandemic to support businesses severely affected by forced closings and social distancing,” said a government spokesperson.

This will affect the following purchases:

  • Food and non-alcoholic beverages sold for consumption on the premises, for example in restaurants, cafes and pubs
  • Hot dishes to take away
  • Take-out non-alcoholic drinks
  • Accommodation in hotels or similar establishments
  • Holiday accommodation
  • Pitches for caravans and tents.

Entrances to the following attractions will also be included in the VAT reduction:

  • Theaters
  • Cirques
  • Salons
  • Theme parks
  • Concerts
  • Museums
  • Zoos
  • Cinemas
  • Exhibitions
  • Similar cultural events and installations

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