Northern Ireland welcome for Rachel Reeves' 'Great British Summer Savings' - but underlying problems 'chronic'
A government decision to reduce VAT on summer attractions to support hard pressed families has been welcomed by poverty and business stakeholders in Northern Ireland.
Chancellor Rachel Reeves set out the measure as part of a package aimed at easing the impact on the cost of living from the Iran war.
She told the Commons on Thursday: “This will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums.
“It will include children’s tickets for cinemas, concerts, soft play, and the theatre, and it will cut the cost of children’s meals in restaurants and cafes from 20% VAT to 5% as well.”
Her “Great British Summer Savings” scheme will apply June 25 until September 1.
Other measures include a 10p per mile increase in tax-free mileage rates, £350m for critical chemicals, £120m for the ceramics sector, and cutting tariffs on over 100 foods.
Sir Keir Starmer, said it was “not right” that “for too many families those things – a trip to the seaside, a visit to the zoo, a bus ride into town for a day out, even a simple treat at the end of the week – are starting to feel out of reach”.
Colin Neill, Chief Executive of Hospitality Ulster, said he welcomes recognition that VAT measures can support businesses and consumers during cost pressures.
"The temporary reduction in VAT on eligible activities over the summer period is a clear acknowledgement that hospitality, leisure and tourism businesses remain under significant strain, while households continue to face difficult financial pressures," he said.
"For hospitality operators across Northern Ireland, any intervention that helps drive footfall and encourages families to enjoy days out is positive news. Businesses throughout our sector have demonstrated remarkable resilience over recent years, but many continue to grapple with rising labour, food and energy costs.”
This announcement reinforces the argument that VAT is one of the most effective tools to stimulate economic activity – and should be "a starting point" for reforms, he added.
Norman Gibson, Centre Manager with the Mid Down CAP Debt Centre, said that “anything like this is of benefit”.
He told the News Letter: "We deal with clients that are in some dreadful circumstances. I go into houses where people literally have nothing in the cupboard to eat."
Those most at risk are not on benefits but are "the working poor" he said.
"They might be working two or three jobs to try and hold things together and they are really struggling. It is a widespread and chronic problem."
Kevin Higgins Head of Policy at Advice NI (formerly Citizen's Advice) said that for many families, it is "simply impossible" to budget for trips to places like the cinema, theatre and zoo during the school holidays.
"School holidays create a distinct and compounding pressure on family budgets,” he said. “The additional cost of feeding children who would otherwise receive a free school meal arrives at the same time as other holiday costs such as childcare, holiday schemes and the huge burden of clothes, shoes and school uniforms, particularly over the summer months."
Advice NI is therefore backing the so-called 'Holiday Hunger Bill' in the assembly that aims to give financial support during schools holiday for children who normally get free schools meals, he said.