Rabu, 15 Juli 2020

McDonald's, Nando's, KFC and Pret A Manger vow to reduce prices after tax cut - Sky News

McDonald's, Nando's and Pret A Manger are among food chains which say they will cut prices for customers as £4.1 billion of VAT cuts come into force.

The government has reduced VAT on hot meals, accommodation and attractions from 20% to 5% for the next six months.

It is expected that some hospitality firms will not pass the full benefit of the tax cut on to customers, as they struggle to recover from the financial blow dealt by the coronavirus pandemic.

Number 10 said "we want businesses to pass on the benefit to customers if they can", but will not force companies to do so.

The Treasury claims households could save £160 due to the changes.

Pret A Manger announced it would reduce the price of its coffee from Wednesday, before doing the same with hot food from Friday.

The firm said the price of a takeaway latte would fall 35p to £2.40 due to the tax break.

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It is one of a number of chains to announce hundreds of job cuts following the lockdown.

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McDonald's said it was recommending its franchises cut the price of popular items on its menu and meal deals.

It said it planned to reduce the price of Happy Meals by 30p and breakfast meals by 50p, with price cuts also recommended for Big Macs, Quarter Pounders and McNuggets.

Meanwhile, fellow fast-food giants KFC vowed to reduce the price of sharing buckets by £1 - and certain "fan favourites" by 50p.

And Nando's pledged to pass on "100% of the benefits" from the tax break to its customers, reducing the price of a quarter chicken by 55p.

Chancellor Rishi Sunak announced the cut last week, saying it would remain in force until January 12, alongside plans to give people a 50% discount, up to £10 per head, to eat out in restaurants in August.

Cold takeaway food - such as sandwiches or salads, and alcoholic drinks - are not covered by the tax cut.

Pub chain Wetherspoon said it would use the measures on hot food and cold drinks to help fund lower prices on some of its most popular beers.

McDonald's
Image: McDonald's says it has recommended its franchises reduce the price of Big Macs, Quarter Pounders and McNuggets

But beer industry leaders labelled the move "misleading", with a joint statement issued by Tom Stainer, chief executive of the Campaign for Real Ale (Camra), and James Calder, chief executive of the Society for Independent Brewers (Siba).

"Like all pubs, Wetherspoon will not be able to benefit from a VAT reduction on beer sales and it is disappointing to see them potentially mislead customers into believing cheaper beer prices are as a direct result of the chancellor's measures," they said.

Bernard Donoghue, director of the Association of Leading Visitor Attractions (Alva), has said he believes the cut will go towards helping venues "repair their finances as opposed to being passed on to customers".

Prime Minister Boris Johnson's official spokesman said: "We want businesses to pass on the benefit to customers if they can, and almost four-fifths of businesses said they did so in 2008.

"But we recognise that many of these businesses have been closed and without income for months, and decisions on prices are ultimately for businesses rather than the government."

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https://news.google.com/__i/rss/rd/articles/CBMibWh0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L21jZG9uYWxkcy1uYW5kb3Mta2ZjLWFuZC1wcmV0LWEtbWFuZ2VyLXZvdy10by1yZWR1Y2UtcHJpY2VzLWFmdGVyLXRheC1jdXQtMTIwMjkyODnSAXFodHRwczovL25ld3Muc2t5LmNvbS9zdG9yeS9hbXAvbWNkb25hbGRzLW5hbmRvcy1rZmMtYW5kLXByZXQtYS1tYW5nZXItdm93LXRvLXJlZHVjZS1wcmljZXMtYWZ0ZXItdGF4LWN1dC0xMjAyOTI4OQ?oc=5

2020-07-15 20:18:11Z
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