UK fast-food and coffee chains cut prices as VAT relief comes into effect

Treasury says some businesses may struggle to pass on savings to customers after lockdown

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The UK’s fast-food chains and coffee shops have set out the details of how customers can benefit from VAT cuts on food and drink that have come into force in the hospitality sector.

McDonald’s, Nando’s, Pret a Manger and Starbucks are promising price reductions on their menus after the chancellor, Rishi Sunak, announced VAT would be reduced from 20% to 5% from 15 July until 12 January 2021.