Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021
News Every Day |

Costa angers customers by sneakily hiking prices as it pockets VAT relief

COFFEE chain Costa has quietly hiked prices and stopped passing on Rishi Sunak’s VAT cut to customers. 

Last year, the Chancellor cut the Value Added Tax rate on food and drinks from cafes and restaurants to 5% from 20%. 

Alamy Live News
Last year, Costa Coffee pledged to cut prices thanks to the VAT cut[/caption]

Businesses are not obliged to pass on the cut although many chains, including Costa Coffee, immediately pledged that they would. 

The hike means a large Americano now costs £3 up from £2.63 and a bacon bap now costs £2.95 up from £2.58. 

Last week, Costa announced a 50% off sale on food for Monday’s, Tuesday’s and Wednesday’s in January, to replace the offer. 

But dozens of customers have complained on social media about the price increase.

One customer said: “Hi, noticed your prices seem to have gone up yet VAT rate cut remains in place until 31 March this year. 

“Can I ask if you have raised prices? Large americano was £2.54 and now £2.90 – eye watering 14% increase.” 


HERE’S how the price hike will affect prices. It’s important to note that prices can vary between branches.

Large americano – was £2.63, now £3 

House filter coffee – was 88p, now £1 

Latte – was £2.23, now £2.55 

Flat white – was £2.36, now £2.70

Ham and cheese toastie – was £2.58, now £2.95 

Bacon bap – was £2.58, now £2.95 

Salted caramel brownie – was £1.97, now £2.25

Another said: “@Costacofee have your prices gone up? £3.65 for a large chai latte!!! Come on guys.” 

A spokesperson from Costa said: “We can confirm we’re no longer passing on the 15% VAT, instead we are looking at new ways to reinvest and provide customers with new offers and promotions.

“We’ll be announcing other campaigns and promotions throughout the year.”

In September last year, the tax relief was extended from January 13 until March 13 2021 by Mr Sunak. 

All Costa-owned outlets passed on the VAT cut last year, although stores operating on a franchise basis were not obliged to implement the cut and many did not do so. 

Costa, owned by American soft drink giant Coca-Cola since 2018, said last year that hundreds of jobs were being put at risk by the pandemic

Read also

’ANA is not a front for the SSA and won’t be drawn into factional wars’

Europe’s top clubs face two billion euro coronavirus hit – report

Arsenal make enquiry about Ligue 1 defender wanted by London rival

News, articles, comments, with a minute-by-minute update, now on — latest news 24/7. You can add your news instantly now — here