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Firms start price cuts as Β£4bn VAT boost begins – Covid-19: Top stories this morning – BBC

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A Β£4bn cut in VAT has come into force, allowing firms in the food, drink and hospitality sectors to slash prices.

Starbucks and McDonald’s are the latest firms to promise reductions after the chancellor ordered a temporary VAT cut from 20% to 5%.

The Treasury estimates households could save Β£160 a year on average, but not all firms may pass on the benefit.

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