Chancellor Rachel Reeves has announced a temporary reduction in the rate of Value Added Tax (VAT) on summer attractions, lowering it from 20% to 5% for the duration of the school summer holidays. The measure is part of a broader package aimed at alleviating the cost-of-living impact stemming from the ongoing conflict in Iran.
Details of the VAT Cut
Addressing the House of Commons on Thursday, Reeves stated: "This will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums. It will include children’s tickets for cinemas, concerts, soft play, and the theatre, and it will cut the cost of children’s meals in restaurants and cafes from 20% VAT to 5% as well."
The reduced VAT rate will be in effect from June 25 until September 1, providing relief during the peak summer season.
Great British Summer Savings Scheme
Reeves also unveiled the "Great British Summer Savings" initiative, which includes free bus travel for children in England throughout the school holidays in August. This aims to further ease financial pressures on families.
Additional Measures
Other components of the Chancellor's plan include:
- A 10 pence per mile increase in tax-free mileage rates, backdated to April 2026.
- A £350 million Critical Chemicals Resilience Fund to support the chemical industry.
- A £120 million fund to assist the ceramics sector.
- The reduction or elimination of import tariffs on more than 100 types of food products.
These measures are designed to mitigate the economic challenges posed by the Iran war, which has contributed to rising costs for households and businesses across the United Kingdom.
