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'Keeping kids entertained can be expensive so VAT cut will help'

· BBC Economy

'Keeping kids entertained can be expensive so VAT cut will help'
  • Published

Mother-of-two Kirsty Gillingham knows all too well how expensive keeping children entertained can be.

Speaking on a day trip to Pleasurewood Hills in Suffolk, she says: "I think I'm constantly Googling, 'What can we do? And how far away is it from us?'

"And especially having two of them, trying to keep them both entertained for a reasonable price is quite tricky."

Like many visitors to the theme park, near Lowestoft, she has benefited from a new package of government measures that includes a temporary VAT cut at many attractions this summer.

Ministers say the "Great British Summer Savings" scheme will help families with the cost of entertaining children during the holidays.

Gillingham, from Hertfordshire, tells BBC Politics East: "Anything that can help with reducing costs anywhere definitely helps for a young family."

'It's all the extras that make a day out expensive'

Kay Bonning-Schmitt, a mother of two from Lowestoft, agrees.

"Attractions are obviously quite expensive, but it's all the extra stuff, like buying lunch and things," she says.

"I wouldn't normally buy food when I'm out, because it's just loads of money, and something we can't really afford."

She says a temporary cut in VAT on children's meals will "definitely help" her family during the holidays.

Father-of-one Graham Hunt, from Salisbury in Wiltshire, is visiting another Suffolk attraction, Africa Alive in nearby Kessingland.

He says he is in the fortunate position of not being put off by the cost of visiting attractions, but adds: "I recognise there are families out there that are struggling, which means a reduction in VAT is a great idea."

Hunt says that his partner does not drive so free bus travel for children, another temporary measure, will be helpful.

How does the scheme work?

The scheme runs from 25 June to 1 September and will cost the government £300m. Its key points include:

  • VAT is reduced on children's meals served in restaurants

  • It is also reduced on children's and family tickets for cinemas, theatres, concerts, shows, and exhibitions

  • VAT is cut from 20% to 5% for adventure parks, nature reserves and wildlife parks.

  • Free bus travel will be available for children aged five to 15 years in England.

The government hopes that businesses will pass the tax cut on to customers.

What do tourist attractions think?

Pleasurewood Hills, which attracts about 200,000 visitors a year, welcomes the VAT cut.

Operations manager Levi Bellis says: "The hospitality industry has been crying out for a VAT deduction for a long time. Any help that it can give us as a business, and also the public, is welcome."

The move is also welcomed by the former head of the New Anglia Local Enterprise Partnership.

CJ Green tells BBC Politics East: "Many businesses are really struggling... so many [of them] would love to see an extension of this scheme to give them the boost that they really need."

Not every attraction can benefit, however.

Africa Alive is part of the Zoological Society of East Anglia (ZSEA), a charity, so does not pay VAT.

Joshua Hunter-Harl, sales and marketing director, says: "Unlike commercial attractions, we won't see any benefit from the scheme, which has made it really tricky for us as a charity during the cost-of-living crisis."

Despite rising costs and no extra government help this summer, his parks are trying to compete by offering concessions and other discounts.

"We've had to be really proactive," he says.

"We know times are tough for families, and we've had to take our own steps to ensure that a day at the zoo remains affordable for everyone."

'Families need long-term help'

Bruce Leeke, chief executive of Ormiston Families, external, an Ipswich-based charity, says the VAT scheme is helpful, but will not solve the problems faced by families.

"The cost-of-living crisis hasn't gone away," he says.

"It has lots of different impacts on people's mental health, [and] obviously if you are anxious about your finances, that anxiety gets passed on to family members.

"When the summer comes, there is much more care needed for children."

He wants to see more investment by the government on long-term help for families.

"Our recommendation would be to invest in early intervention," he says.

The Labour MP for Southend West and Leigh, David Burton-Sampson, says the government is already providing 30 hours of free childcare a week for children before they go to school, but concedes that the issue may need to be looked at again.

"There is a finite amount of finance and we're trying to target that finance on the ways that will make the biggest difference to people's lives."

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    • Published25 June