The government has reduced VAT on hot meals, accommodation and attractions from 20% to 5% for the next six months.
It is expected that some hospitality companies will not fully pass on the benefits of the tax reduction to customers because they are struggling to recover from the financial blow suffered by the coronavirus pandemic.
Number 10 said, “We want businesses to pass the benefit on to their customers if they can,” but will not force businesses to do so.
The Treasury claims that households could save £ 160 due to the changes.
Pret A Manger has announced that it will cut the price of its coffee from Wednesday, before doing the same with hot dishes from Friday.
The firm said the price of a takeout latte would drop from 35p to £ 2.40 due to the tax break.
It is one of many channels to announce hundreds of layoffs after the lockout.
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McDonald’s said it was recommending that its franchises reduce the price of popular items on its menu and meal offerings.
He said he plans to cut the price of Happy Meals by 30p and breakfasts by 50p, with price cuts also recommended for Big Macs, Quarter Pounders and McNuggets.
Meanwhile, the other fast food giants KFC have pledged to cut the price of sharing the buckets by £ 1 – and some “fan favorites” by 50p.
And Nando’s is committed to passing on “100% of the benefits” of the tax break to its customers, thus reducing the price of a quarter of chicken by 55p.
Chancellor Rishi Sunak announced the reduction last week, saying it would remain in effect until January 12, alongside plans to give people a 50% discount, up to £ 10 per capita, on eating out. restaurant in August.
Cold takeouts – such as sandwiches or salads and alcoholic beverages – are not covered by the tax reduction.
The pub chain Wetherspoon said it would use the hot food and cold drink measures to help fund lower prices on some of its more popular beers.
But beer industry leaders described the decision as “misleading,” with a joint statement by Tom Stainer, chief executive officer of Campaign for Real Ale (Camra), and James Calder, chief executive officer of the Society for Independent Brewers (Siba).
“Like all pubs, Wetherspoon will not be able to benefit from a reduction in VAT on beer sales and it is disappointing to see them mislead customers into believing that cheaper beer prices are the result direct from the Chancellor’s actions, “they said.
Bernard Donoghue, director of the Association of Major Tourist Attractions (Alva), said he believed the reduction would go to help sites “fix their finances rather than being passed on to customers”.
Prime Minister Boris Johnson’s official spokesperson said, “We want businesses to pass the benefit on to customers if they can, and almost four-fifths of businesses said they did so in 2008.
“But we recognize that many of these businesses have been closed and without income for months, and pricing decisions are ultimately for the business rather than the government. “