The Chancellor described the move as “a £ 4bn catalyst for the hospitality and tourism industries, benefiting more than 150,000 businesses and consumers worldwide”. Deloitte accountants said families had to save more than £ 5 on a £ 45 meal and even more at the entrance to attractions.However, some companies and organizations contacted by the Guardian said they still decided to pass the reduction on to customers, while others said they decided not to.
The National Gallery said tickets for its paid exhibit of Titian’s works would not drop in price after the tax cut.
“We, like other cultural places, have lost money following the closure of the coronavirus,” he said in a statement.
“Therefore, we have made the decision to keep the prices of Titian tickets up to date and not to reduce in accordance with the reduction in VAT on attractions and tourism. This is how we can use the reduced VAT to help us fix our finances for the future. “
The IHG group, which operates hotels under several brands, including Holiday Inn and Crowne Plaza, said it would pass the reduction on to corporate bookings, but as a franchisee, it could not confirm that all of its outlets would reduce prices for consumers.
Center Parcs, McDonald’s and Pizza Hut all said they were studying the detail of the cut and figuring out how to respond to it.
Best Western, which operates 300 hotels, said it would cut prices for rooms and food in line with the reduction in bookings made from Wednesday. Anyone who has already reserved a room will be subject to the old rate of 20%.
Mexican restaurant chain Wahaca has said it will pass the reduction on to diners as of Wednesday. This means that a fish taco dish priced at £ 6.95 fell to £ 6.10. Waitrose also confirmed that it would cut prices in its cafes, and Starbucks said it would pass the reduction on to customers.
The Treasury said, “We want companies to pass the benefit on to their customers if they can, and almost four-fifths of the companies 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. “