Plenty of items are set to get cheaper today as new VAT cuts come into place.
Chancellor Rishi Sunak announced the cuts during his 'mini-budget' in order to 'get the sectors moving and protect jobs'.
Speaking in the House of Commons, Mr Sunak said the plan would help protect livelihoods after the economy contracted by 25 per cent in just two months due to Covid-19.
Value added tax will drop from 20 per cent to 5 per cent for six months from Wednesday July 15, with food and non-alcoholic drinks included.
The cut will run until January 12, 2021 and will include takeaways and meals out as well as hotel, B&B and campsite stays.
"These changes are being brought in as an urgent response to the coronavirus pandemic to support businesses severely affected by forced closures and social distancing measures," a Government spokesman said.
It will affect the following purchases:
- Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafés and pubs
- Hot takeaway food
- Hot takeaway non-alcoholic beverages
- Sleeping accommodation in hotels or similar establishments
- Holiday accommodation
- Pitch fees for caravans and tents.
Admissions to the following attractions will also be included in the VAT cut:
- Theatres
- Circuses
- Fairs
- Amusement parks
- Concerts
- Museums
- Zoos
- Cinemas
- Exhibitions
- Similar cultural events and facilities
