Hospitality Industry: Expenditure
The question
To ask the Chancellor of the Exchequer, what estimate has she made of the proportion of household income spent on hospitality during summer holidays versus other VAT rateable services, for each income quartile.
Answered by Dan Tomlinson
From 25 June to 1 September the Government is introducing a temporary reduced rate of VAT on children's menu meals and eligible family attractions.
This is a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks, helping families enjoy a day out for less.
Distributional analysis of the Government's tax, welfare and public service spending decisions is routinely published alongside fiscal events. Distributional analysis published alongside Budget 2025 shows that Government decisions made from Autumn Budget 2024 onwards are progressive, and benefit households in the lowest income deciles the most on average.
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