McDonald's customers can look forward to cheaper meals after the Labour government confirmed a VAT reduction from 20% to 5% on eligible activities across England, Wales, Scotland, and Northern Ireland. The move follows a roundtable between Chancellor Rachel Reeves and major leisure and hospitality companies last week.
Participating Businesses Commit to Pass on Savings
Picturehouse, Everyman Cinemas, Vue, Butlin’s, Wetherspoons, Shepherd Neame pubs, McDonald’s, KFC, and Burger King are among the businesses that have pledged to pass on the tax cut to customers. The scheme aims to help families enjoy weekend treats, days out, and day trips during the summer.
Chancellor Rachel Reeves said: “I know the cost of living is a number one concern for families, and it can be even harder over the summer holidays when kids want to do things and money is tight. So we’re making it that bit easier for families to make memories together and enjoy the little treats - while giving a boost to businesses across the UK.”
Government Support Measures
Reeves added: “This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, and freezing prescriptions and rail fares. We are able do this because we have the right economic plan, resulting in the UK having the fastest growing economy in the G7.”
Prime Minister Keir Starmer commented: “The cost of living isn’t just about paying the bills, it’s about being able to afford the moments that matter with your family. Whether it’s a trip to the cinema, a day out together or family meal, too many parents have had to hold back because of pressure on household budgets - that’s why we’re slashing VAT on family days out this summer.”
What the VAT Cut Covers
Prices will be slashed for kids' menu meals served in restaurants for consumption on the premises, as well as children’s and family tickets for cinemas, theatres, concerts, shows, and exhibitions. The VAT reduction applies to eligible activities across all four UK nations.
