Chris Mason: VAT cut on summer fun - the announcement that didn’t leak

The government’s decision to reduce VAT on summer attractions from 20% to 5% has been hailed as a “Great British Summer Savings” initiative. However, beneath the headlines lies a more complex story about the role of government in addressing cost-of-living pressures.

The announcement caught many off guard, even among those who closely follow Westminster’s developments. This is a testament to the unpredictability of politics and the ability of governments to introduce significant policy changes without prior leaks or briefing. The fact that this cut was not trailed beforehand suggests an attempt to avoid controversy and focus on the more palatable aspects of the announcement.

One cannot help but wonder if this move is a case of trying to distract from more pressing issues, such as soaring energy bills. It’s surprising that there wasn’t a more significant intervention announced alongside the VAT cut. Government officials have explained that we are heading into the summer when bills are lower and focus should be on contingency planning for winter. However, many will point out that this is precisely the time when help is most needed – not just for those struggling to pay their bills but also for businesses already feeling the pinch.

The decision not to offer a universal package of help this winter has sparked debate about the role of government in intervening on behalf of citizens. Some argue that the Conservative schemes implemented during Liz Truss’s tenure were unaffordable and should not be repeated. Others claim that offering such support would be irresponsible, given its impact on public finances. However, one cannot help but feel that this is a cop-out. It seems convenient to blame the previous government for setting a precedent that future administrations are too afraid to follow.

This lack of willingness to intervene has significant implications for society’s most vulnerable members. The idea that targeted support will be forthcoming next winter only adds to the uncertainty and anxiety faced by those struggling to make ends meet. As one government official candidly put it, “Who knows where we will be in October?” The answer is: none of us do.

The VAT cut on summer attractions has also brought to mind a wider question about our collective expectations regarding government intervention. Have we become too accustomed to massive state interventions during times of economic crisis? Think back to furlough during the pandemic – an unprecedented measure that seemed almost paltry in retrospect. It has created a sense of expectation among citizens, who now wonder why governments can’t do more.

Ministers are torn between delivering policies that help people and avoiding the fiscal consequences of previous interventions. They wrestle with this dilemma while also trying to mitigate the massive cost-of-living pressures faced by families for so long. But in doing so, they risk creating a sense of disillusionment among those who feel ignored or abandoned.

As we bask in the “Great British Summer Savings” glow, let’s not forget that winter is just around the corner. The real question is: will our leaders be prepared to take bold action when it matters most? Or will they continue to dither and delay, leaving families to pick up the pieces? Only time will tell, but one thing is certain – the next few months will be a test of government’s resolve like no other.