Cornwall businesses seek permanent VAT cuts for tourism sector

Hospitality and tourism businesses in Cornwall and North Devon are calling for a permanent reduction in VAT rates following the conclusion of the government’s £300m Great British Summer Savings scheme. The temporary initiative reduced VAT from 20% to 5% on children’s meals and family tickets for cinemas, shows, and outdoor attractions between late June and September 1.

Business leaders have expressed mixed views on the scheme’s effectiveness. While some managers reported slight increases in visitor numbers and positive customer feedback, others argued the policy was poorly publicized and lacked significant impact. 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 for attractions would enable businesses to invest in the future.

Local operators, including management at The Big Sheep Farm and Theme Park, have advocated for extending the scheme to cover upcoming periods such as the October half-term and Halloween to help families manage the costs of leisure activities.