Chancellor Rachel Reeves' new tax cut, the Great British Summer Savings scheme, was put to the test by a parent at Nando's in Leeds, resulting in a saving of just 87 pence. The initiative, which reduces VAT on family outings from 20% to 5%, applies to kids' meals, theme parks, holiday parks, and cinemas.
How the Tax Cut Works
Announced at the end of June, the scheme is designed to ease the cost of living for families during the summer holidays. Reeves stated: 'I know the cost of living is a number one concern for families, and it can be even harder over the summer holidays when kids want to do things and money is tight. So we’re making it that bit easier for families to make memories together and enjoy the little treats - while giving a boost to businesses across the UK.'
Participating chains include Nando's, McDonald's, Wetherspoon, KFC, and Burger King, all of which have pledged to pass on the tax savings to customers in full.
Putting the Cut to the Test
During a visit to Nando's at Leeds' White Rose Shopping Centre, a family ordered half a chicken with chips and sweetcorn, a garlic chicken burger, and a kids' macaroni cheese with cucumber sticks and sweetcorn on the cob. The total came to just under £48. However, the tax saving only applied to the children's meal, reducing its price from £6.95 to £6.08—a saving of 87p.
The parent commented: 'Our little boy has decided he loves a cheeky visit, after discovering its macaroni cheese with cucumber sticks and sweetcorn on the cob - and I’m always happy to find a way to get him eating vegetables.' Despite the modest saving, they added: 'I mean, it all counts I guess.'
Impact on Families
The tax cut is part of broader efforts to support households facing rising costs, including nursery fees and everyday expenses. While some may view the 87p saving as minimal, the scheme aims to provide cumulative benefits across multiple family outings over the summer.
