Hospitality and tourism businesses in Cornwall are calling for the government's temporary VAT reduction scheme to be widened and extended. The £300m Great British Summer Savings scheme was designed to help families with the cost of summer holidays, applying a temporary 15% VAT cut from 20% to 5% to family attraction tickets, children's meals and cinema tickets for just under 10 weeks.
Keith Southwell, managing director of Lappa Valley Railway, said it "hadn't made any difference whatsoever" to his business, with many customers "benefitting but not even realising". The government said the scheme was "increasing footfall for businesses over the summer… and boosting local economies".
From the end of June until 1 September, VAT was reduced on children's meals served in restaurants, as well as kids' and family tickets for cinemas, shows, exhibitions and outdoor venues and activities.
Tara Stapley, general manager of the Big Sheep Farm and Theme Park in Bideford in north Devon, said: "Numbers have increased slightly and I think that is partly down to the summer savings scheme." The business reduced ticket prices and added more children's meals to the menu. Stapley said there were "lots of people calling and asking about it". She said: "People coming have been quite pleasantly surprised by our ticket prices and we're saying we're part of the summer savings scheme and they have been very grateful for that."
Stapley added the scheme could have been publicised more as "a lot of people didn't know about it". She backed any extension of the scheme "100%, if that happened we'd be dancing on the ceiling I think" and said it would be helpful for families and businesses over the October half term and Halloween. Stapley said days out can be expensive: "We want to make that as affordable as possible and memories that last a lifetime for them. Anything that the government can do in extending the scheme would be a huge help not only for us but the people who want to visit our site as well."
Southwell, who is also chair of the Cornwall Association of Tourist Attractions, said he had initially thought it was "a great idea". He added: "But I know some attractions have not reduced the price but taken that money and used it for their attraction, which, in fairness, is fine because otherwise they might have had to have put their prices up." He said a permanent 0% or 5% VAT rate for attractions "would allow all of us to invest for the future".
Lappa Valley head of marketing Matt Bunt said it was "amazing that families are able to keep a bit more money in their pockets", but added the "policy was put out in a bit of a rush and not very well publicised by the government".
Pete Fraser, from the Harbour Lights fish and chip restaurant in Falmouth, said dine-in children's meals had been £2 cheaper and "it may have pushed up [people's] spending a bit". He said: "Families may be going for a pudding or an extra drink as well, so it's been useful. [However,] I hate to use the word 'gimmick', but then it's gone and we're back to where we started again."
Hospitality Wants Permanent VAT Cut, Not a Gimmick