Rachel Reeves has announced a temporary VAT cut for some summer family outings, alongside free child bus travel and targeted food import tax cuts.
Families could see cheaper tickets for theme parks, zoos, museums and other attractions this summer under a temporary VAT cut announced by Chancellor Rachel Reeves as part of a wider package aimed at easing cost-of-living pressures.
The government said VAT will be reduced from 20% to 5% from the end of June, when schools break up in Scotland, until children return to classrooms in England, Wales and Northern Ireland on 1 September. The reduction will apply to a range of family-focused spending, but the final price cut for customers will depend on whether businesses pass the saving on.
The discount will cover children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions, as well as admission for adults and children to attractions including amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions. Children’s menu meals served in restaurants and cafes for eating on the premises will also be included.
Reeves said the measures were intended to help households do more than simply manage bills. “I recognise that what matters for families is not just getting by, but being able to enjoy time together without worrying about the next bill,” she said, adding that the plan was also designed to support hospitality.
The VAT move is part of what the government is calling a “Great British Summer Savings” campaign, estimated to cost about £300m. The package also includes free travel for children aged five to 15 on participating local buses in England throughout August, and targeted cuts to import charges on more than 100 food products, including biscuits, chocolate, dried fruit and nuts. The full list of affected products is expected next week.
Officials hope suspending some tariffs will help reduce pressure on food prices, though ministers have acknowledged there is no guarantee shoppers will see lower prices. Chief Secretary to the Treasury Lucy Rigby told BBC Radio 4’s Today programme that the government could not be exact about the impact on individual items because supermarkets set their own prices.
The announcements come as households face rising fuel prices and warnings of higher energy and food bills linked to disruption from the war in Iran. Helen Miller, director of the Institute for Fiscal Studies, said the measures would create some savings but estimated the average benefit at about £10 per UK household.
UK Hospitality welcomed the VAT cut as a positive step for families and the sector, while Citizens Advice said the package did not address immediate pressures such as record energy debt. The next test for the policy will be how widely businesses participate — and how much of the tax cut reaches families at the till.
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