INDULGING in a takeaway is set to become cheaper from today as value added tax (VAT) is slashed to help revive the hospitality sector.

VAT will drop from 20 per cent to 5 per cent for six months from today.

Restaurants, theatres, and holiday businesses are all set to benefit.

Chancellor Rishi Sunak said the VAT cut will “get the sectors moving and protect jobs”.

The VAT discount will run until January 12, 2021 and is estimated to cost the government £4.1bn.

The treasury says it will save households £160 on average.

But there is a caveat; the savings will only be passed on to consumers should the businesses decide to.

The VAT cut will affect the following businesses:

  • Food and non-alcoholic beverages served in pubs, restaurants and cafes
  • Hot takeaway food
  • Hotels
  • Inns
  • Boarding houses and similar businesses
  • Holiday and caravan parks
  • Other holiday accommodation businesses who charge fees for tent pitches or camping facilities

The VAT cut will affect the following attractions:

  • Theatres
  • Fairs
  • Shows
  • Circuses
  • Amusement parks
  • Concerts
  • Museums
  • Cinemas
  • Zoos
  • Exhibitions

The temporary VAT cut does not include alcoholic drinks, the Treasury’s “plan for jobs” document said.

READ MORE: Man sentenced in Vietnam for unlawful killing of a man in Newport in 2006

Russell Nathan, senior partner at accountancy firm HW Fisher, said: “Our restaurants, pubs, shops and hotels are struggling.

“This is a timely announcement from Government as businesses are in desperate need of a clear action plan.

“It is vital we see the hospitality industry back up and running, and these measures announced today will provide an essential lifeline for many UK businesses.”

David Weston, chairman of the Bed & Breakfast Association, said: “We are delighted by the VAT cut on behalf of our larger members, guesthouses and small hotels who are VAT registered.

“It will help stimulate demand and, once our borders open to incoming tourism, will also help UK tourism overall as Britain’s VAT rate has been amongst the highest of our international competitors.”

Joss Croft, chief executive of UKinbound, a trade association representing the inbound tourism industry, said the VAT cut and discount for eating out will “deliver immediate positive impacts”.

But he warned that many firms involved in inbound tourism are “on the brink” and will not benefit from those measures.