All the items that will be cheaper from today as changes to VAT comes into force

Food, accommodation and attractions such as zoos, cinemas and amusement parks will be cheaper from today as the government slashes VAT to the support struggling tourism industry and encourage people to spend money.
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Chancellor Rishi Sunak has announced value added tax will be cut today from 20% to 5%, making food, takeaways, non-achoholic drinks and days out cheaper for the next six months as part of the government’s £4.1 billion plan to boost tourism.

Theatre shows, concerts, museums, zoos, cinemas and exhibitions could cost less from today as part of the new VAT reductions which the Treasury estimates could save households £160 a year.

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Attractions such as planetariums, botanical gardens, studio and factory tours could also benefit from the reduced rate, although the cuts will only apply if companies decide to pass the discount on.

VAT slashed from today  (Photo by Leon Neal/Getty Images)VAT slashed from today  (Photo by Leon Neal/Getty Images)
VAT slashed from today (Photo by Leon Neal/Getty Images)

Rishi Sunak revealed the proposed cuts, which will remain in force until January 12, last week as part of plans to give people a 50% discount of up to £10 per head when eating out in restaurants during August.

The Chancellor also announced that businesses which have furloughed staff will be awarded a £1,000 bonus, on an average of at least £520 a month till January to keep workers in jobs and protect the economy from the coronavirus recession when the furlough scheme ends in October.

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Rishi Sunak said the jobs retention bonus could cost up to £9 billion if all furloughed workers are retained and warned that "hardship lies ahead", despite insisting that no-one will be left "without hope".

He said: “We'll pay the bonus for all furloughed employees."

"So if employers bring back all nine million people who have been on furlough, this would be a £9 billion policy to retain people in work.

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"Our message to business is clear: if you stand by your workers, we will stand by you."

The value added tax, which consumers pay when buying goods and services could make it cheaper to buy food and on-alcoholic beverages that are sold in pubs and restaurants, as hot takeaway food and drinks are applicable.

It might also cost less to stay in a hotel, caravan site or B&B if businesses pass on the reduced rate to customers.

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Pret A Manger said the price of its coffee will be cut from today following the VAT change, with the cost of their hot food to be reduced on Friday, July 15.

The price of the high street chain’s takeaway latte will fall 35p to £2.40 because of the tax break.

Fast food restaurant McDonald’s also announced they are recommending a cut in the price of their most popular menu items and meal deals to their franchisees.

The chain intends to reduce the cost of their Happy Meals by 30p and breakfast meals by 50p, with price cuts also recommended for Big Macs, Quarter Pounders and McNuggets.

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Admissions to the following will be included in the VAT cut:

- shows

- theatres

- circuses

- fairs

- amusement parks

- concerts

- museums

- zoos

- cinemas

- exhibitions

- similar cultural events and facilities

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