Reeves’ ‘Great British Summer Savings‘ targeted cut to VAT is only possible thanks to Brexit. A huge victory for sovereign Britain…
The EU VAT Directive requires member states to apply reduced rates only to pre-approved categories in Annex III, with a 5% floor. There is no freedom to design bespoke rate categories…
The British scheme applies 5% VAT specifically to children’s meals and children’s/family tickets while keeping adult rates at 20%. EU law doesn’t allow that differentiation within a category based on the consumer’s age. The 25 June to 1 September seasonal window also treats VAT as a promotional tool while the EU framework blocks temporary interventions. Covid hospitality cuts required exceptional justification…
The bespoke category list (soft play, adventure parks, observation attractions) also doesn’t map onto existing Annex III categories. Some elements may have worked under EU rules and several EU countries do apply reduced rates to them, but Reeves’ specific combination is only possible because of post-Brexit VAT sovereignty. Cheers…
If only Reeves could extend her logic on VAT – a relatively harmless levy – to the other taxes she has massively hiked. No one tell Andy Burnham or Wes Streeting…
Burnham confirms he spoke to Trump last night about drilling in the North Sea:
“I indicated in the phone call that we had a week last Monday that I would take a pragmatic approach when it comes to the North Sea, and that is my intention as we go forward from here. There is a resource there. When people are struggling, we can’t ignore that. Hence, me indicating that to the president…”