STORY
Restaurant owners have criticised Rachel Reeves’ plan to cut tax on children’s meals, warning that the measure may have limited impact on family budgets or business costs. The Guardian reported that some restaurateurs described the proposal as a political soundbite rather than a policy likely to make a significant difference during the summer holidays.
The measure forms part of the Chancellor’s wider cost of living package, which is designed to show that the Government is responding to household pressure. Ministers have sought to focus on targeted support for families, including measures linked to food prices and children’s activities.
The response from parts of the hospitality sector underlines the difficulty facing the Treasury as it tries to design measures that are visible to voters but affordable within tight fiscal constraints. Reeves is facing pressure from Labour MPs to go further on living costs, while also seeking to reassure markets that the Government will maintain discipline over borrowing and tax policy.