RESTAURANTS EXPLOIT VAT CUT ON CHILDREN'S MEALS WITH ADULT DISHES

Restaurants and pubs are expected to devise schemes to exploit a temporary reduction in VAT on children's meals, following the launch of a £25 "children's" menu featuring dishes such as wild Burgundy snails and anchovy butter toast. Rachel Reeves announced the tax cut, reducing VAT from 20% to 5% on meals for under-18s between 25 June and 1 September, as part of a "Great British summer savings scheme" intended to support struggling hospitality venues and ease pressure on families. The chancellor presented the scheme at the UK Hospitality trade conference, though the reception proved muted. Leading figures in the sector subsequently criticised the initiative as inadequate.

Chris Jowsey, chief executive of Admiral Taverns, a chain comprising 1,300 pubs, described the scheme as a "joke" and said the resulting discount was "so small it's embarrassing". He noted the scheme would not benefit pubs that do not serve food. Jowsey drew a comparison to Covid restrictions that effectively allowed venues to serve alcohol provided it accompanied a scotch egg, and predicted "enterprising interpretations of children's menus" would emerge. The Blue Stoops, a restaurant in Kensington, west London, has already launched a £25 menu marketed to "children" featuring wild Burgundy snails with bacon, anchovy butter toast and beef and oyster pie.

The criticism reflects broader frustration within the hospitality sector regarding government support. Industry representatives have contrasted the VAT reduction with £5bn in additional costs imposed on pubs, bars, hotels and restaurants since Labour returned to power in 2024. The three-month scheme remains the government's primary hospitality support measure announced to date.