Hospitality operators in Cornwall say the temporary VAT cut failed to help large parts of the sector and are pressing for a permanent lower rate. The government’s £300m Great British Summer Savings reduced VAT from 20% to 5% on family attraction tickets, children’s meals and cinema tickets for just under 10 weeks, since the end of June until 1 September.
Attractions and eateries reported mixed results. Keith Southwell, managing director of Lappa Valley Railway, said the policy "hadn't made any difference whatsoever" to his business, adding customers were often "benefitting but not even realising". Staff at the site had displayed posters about the scheme but many visitors did not notice the benefit.
Other operators saw some uplift. Tara Stapley, general manager at the Big Sheep Farm and Theme Park, said "Numbers have increased slightly and I think that is partly down to the summer savings scheme." The business cut ticket prices and added more children’s meal options, and Stapley said customers had responded positively. She backed extending the relief, saying she would support it "100%, if that happened we'd be dancing on the ceiling I think" and that a longer run would help families during October half term and Halloween.
Not every venue found the measure straightforward to apply. Visit Devon director Sally Everton said the scheme should have continued to 1 November to cover the autumn half term and later family breaks, and warned some operators found the administrative side a "logistical nightmare". Lappa Valley's head of marketing, Matt Bunt, said the policy had been "put out in a bit of a rush and not very well publicised by the government." Pete Fraser of Harbour Lights in Falmouth said the temporary cut made dine-in children's meals £2 cheaper and may have encouraged extra spending on puddings or drinks, but called the short window a "gimmick" and warned businesses need support into winter.
Industry lobbyists pushed for a lasting change. Southwell said a permanent 0% or 5% VAT rate for attractions "would allow all of us to invest for the future." Allen Simpson, CEO of UK Hospitality, suggested the relief may have persuaded families to take an extra day out, and added: "Hopefully that's a lesson that the government can take forward into the coming months." The Treasury said the scheme had helped South West businesses and families, increased footfall and complemented a separate 20% cut in business rates for pubs, social clubs and live music venues, which it said saved "thousands of locals over £1,000 a year."
Operators now want clarity on whether the government will widen or extend the relief, or consider a permanent lower VAT for hospitality and attractions ahead of the quieter winter season.
