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Original poster

Restaurant Takings vs School VAT

139 replies

PollyG23 · 01/04/2025 23:18

Restaurant takings are down YTD and most commentators are saying that it is due to NICS and min wage but surely a big factor is due to the VAT on school fees which is eating into middle class discretionary spending- why is no one mentioning this? (Or maybe I just haven’t seen anything?) What else is getting eaten into? (No pun intended)

OP posts:
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Contentment1628 · 01/04/2025 23:35

PollyG23 · 01/04/2025 23:31

Interesting- i didnt know this @Poonu

Edited

Probably because it’s not true.

ThinWomansBrain · 01/04/2025 23:34

Minimum wage has only just kicked in today, new NICs presumably 6 April - OK some orgs may have been cutting staff & doing some advance planning.

there's just over 0.5m children in private schools (2022) - assume some siblings - lets say 1/4 million families.
Population is a little under 70 million
I don't think that VAT on schools is having that much impact on restaurant takings.

Maybe OP went to private school? Having problems getting it into perspective.

Whoops - was it an April Fools thread?

Mielikki · 01/04/2025 23:34

PollyG23 · 01/04/2025 23:31

Interesting- i didnt know this @Poonu

Edited

Everyone focuses on the fact that 7% of children are privately educated (around 770,000) but ignores the fact that most adults are not parents of school-age children.

Educationpony · 01/04/2025 23:32

Yes for us - we have definitely cut back on eating out due to VAT increases (we are not wealthy but middle class earners) but agree with others it’s not just VAT, it’s the cost of living also.

Ironically our friends who have quit private schools due to VAT are now splashing out on fancy overseas holidays to Asia and Australia so yes sadly the uk is not getting that extra “spare” money either

Original poster
PollyG23 · 01/04/2025 23:31

Interesting- i didnt know this @Poonu

OP posts:
Mielikki · 01/04/2025 23:31

Some simple maths shows that about 1% of the adult population of the UK have a child in private school.

I imagine the impact is minimal.

Original poster
PollyG23 · 01/04/2025 23:29

True food prices have gone up a lot

OP posts:
Potsofpetals · 01/04/2025 23:27

It’s not really affecting us at the moment as school fees are a minor part of our income. VAT is irrelevant.

I have mainly stopped eating out because as someone who worked for every penny they have, I object to the absolutely insane cost of basic food. £10 for a panini I can make myself for £2. No thanks.

If you are talking about sit down restaurants specifically, again it’s down to value for money again for me. I’m sick of being served rubbish for £100 a person

Original poster
PollyG23 · 01/04/2025 23:27

Not what i was meaning @TheGrimSqueakersFlea (as Im sure you know) but that that particular demographic has seen a marked reduction in discretionary income which is affecting restaurants and i’m also interested in speculating what other adjacent sectors and what people’s view are

@neverknowinglyunreasonable that was quite funny!

OP posts:
RatedDoingMagic · 01/04/2025 23:27

Really, no.

If a family has 2 children at a £25kpa private school that has just gone up to £30kpa from VAT the school fees budget has just rocketed by £10,000pa. You do not address a £10,000pa deficit by cutting back on restaurant spend. Who spends anything like that in restaurants - £833 per month?

You would be more likely to sell the holiday home in cornwall or forego the skiing holidays for a few years - and might well increase the restaurant spend as a relatively cheap way to have a treat with the leftover funds thus released

TheGrimSqueakersFlea · 01/04/2025 23:22

Only middle class people eat in restaurants?

Poonu · 01/04/2025 23:21

More kids withdrew from private school after Liz truss disastrous budget than any other time. Check the stats.

neverknowinglyunreasonable · 01/04/2025 23:19

I stubbed my toe earlier and I'm pretty sure it was due to VAT on private school fees and yet the media are too scared to cover it

TimeFlysWhenYoureHavingRum · 01/04/2025 23:18

Yabu.