Merlin Entertainments, the UK attractions giant, has said it will pass on the benefit of the recent reduction in VAT to its customers by lowering entry costs.

The company – operator of attractions including The London Eye, Alton Towers Legoland and Madame Tussauds among others – said that the temporary reduction of VAT from 17.5 per cent to 15 per cent, which came into force on 1 December, would immediately benefit its customers.

“We believe that the saving should be passed on the consumer and we have moved very quickly to do this,” said chief executive Nick Varney.

“It is however somewhat ironic that the government has chosen VAT to make a point at this time. The tourist and leisure industry has lobbied constantly over many years for a reduction in VAT on ticket prices and accommodation, in an effort to make UK attractions competitive with other parts of Europe – where VAT on these items is an average of 5/6 per cent.”

Photo: Merlin chief executive Nick Varney