Fans of the fast food chain are in for some good news as McDonald’s, as well as other businesses, has announced a price cut on some of its biggest items.
This is everything you need to know about which McDonald’s menu items are seeing a price reduction, and why.
Why is McDonald’s cutting its prices?
A £4 billion cut in VAT was brought into force on 15 July, allowing firms in the food, drink and hospitality sectors to cut their prices.
The Chancellor, Rishi Sunak, reduced VAT from 20 per cent to five per cent last week. The VAT reduction will remain in place until 12 January 2021.
The idea behind the price reductions is to help firms recover and encourage customers to spend money following the coronavirus crisis.
VAT stands for Value Added Tax and is the tax that you have to pay when you purchase goods or services. When you buy something, the VAT is already included in the price. The standard rate of VAT in the UK is 20 per cent.
There are some things that you do not have to pay VAT for, including most supermarket food, children’s clothing and newspapers.
Which McDonald’s items will be made cheaper?
This is the full list of items and their price changes that will be implemented by McDonald’s:
- 40p off Extra Value Meals
- 30p off Happy Meals
- 20p off McNuggets, Big Macs, Quarter Pounders, Filet O’Fish, McChicken and Veggie Deluxe
- 30p off McMuffins
- 40p off breakfast meals
- 30p off black and white coffees and cappuccinos and lattes
McDonald’s franchises are able to set their own prices, so these prices could vary from branch to branch.
The price cut also doesn’t affect McDelivery orders, only takeaway, drive through and eat in orders.
The likes of fries, cold drinks and McFlurries will not have their prices changed.
Are other businesses reducing their prices?
Other food chains are also set to cut their prices, including KFC, Starbucks, Pret, Wahaca and Waitrose cafes.
However, businesses do not have to cut the prices and instead can collect the savings themselves to repair finances that have been hit during the coronavirus.
The Treasury said, “We want businesses to pass on the benefit to customers if they can, and almost four fifths of businesses said they did so in 2008.
“But we recognise that many of these businesses have been closed and without income for months, and decisions on prices are ultimately for businesses rather than the government.”