Hospitality and tourism operators across Cornwall and Devon have expressed support for extending and widening a temporary value-added tax reduction program that concluded earlier this month. The Great British Summer Savings scheme reduced VAT from 20% to 5% on family attraction tickets, children’s meals, and cinema tickets for approximately ten weeks, ending on 1 September.
Business owners reported mixed results from the initiative. The Big Sheep Farm and Theme Park in north Devon noted a slight increase in visitor numbers and reported positive customer feedback after reducing ticket prices and expanding children’s menu options. However, other attractions, including Lappa Valley Railway, said the scheme had minimal impact on their operations, with some customers unaware they were benefiting from the discount. Some venue operators noted logistical challenges in implementing the scheme.
Industry representatives and business leaders have called for a permanent reduction in VAT rates for the hospitality sector rather than temporary measures. Keith Southwell, managing director of Lappa Valley Railway and chair of the Cornwall Association of Tourist Attractions, suggested that a permanent 0% or 5% VAT rate would enable businesses to invest for the future. Pete Fraser, owner of a fish and chip restaurant in Falmouth, characterized the temporary scheme as a “gimmick” that provided only short-term relief before businesses faced the challenge of maintaining profitability during slower winter months.
Visit Devon’s director Sally Everton stated the scheme should have extended further into autumn to cover school half-term holidays and suggested broader, permanent VAT cuts across the hospitality sector would be more beneficial. UK Hospitality’s CEO noted the policy had enabled families to afford additional outings and suggested the government should consider lessons from the program going forward.
A Treasury spokesperson emphasized that the scheme had increased footfall and boosted local economies, noting it complemented other business support measures including a 20% business rates reduction for pubs and music venues.
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