The Government has today launched the Great British Summer Savings scheme, a tax-cutting initiative designed to make summer outings more affordable for families across the UK. The scheme reduces VAT from 20% to 5% on a range of qualifying activities and meals, including children's menu items, cinema tickets, theatre performances, and admission to attractions such as amusement parks, museums, zoos, and soft play centres.
Who Benefits Most
Households with children are expected to benefit the most, while businesses—from nationwide chains like Burger King and Butlin's to independent cafés and small businesses—stand to gain from increased summer trade. The scheme applies across England, Wales, Scotland, and Northern Ireland.
Prime Minister Keir Starmer said: "The cost of living isn't just about paying the bills, it's about being able to afford the moments that matter with your family. Whether it's a trip to the cinema, a day out together or family meal, too many parents have had to hold back because of pressure on household budgets - that's why we're slashing VAT on family days out this summer."
What the Tax Cut Covers
The VAT reduction applies to:
- Children’s menu meals served in restaurants for consumption on the premises
- Children’s and family tickets for cinemas, theatres, concerts, shows, and exhibitions
- Admission tickets for both children and adults to attractions, including amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks, and observation attractions
Impact on Families and Businesses
Haven Holidays, one of the participating businesses, estimates the scheme could return up to £5 million to families across its 39 parks. The VAT reduction also applies to children's menus for families who have already booked holidays, as well as those planning future trips.
Chancellor of the Exchequer Rachel Reeves said: "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."
Additional Support
Reeves highlighted other measures already in place, including freezing fuel duty, reducing energy bills by £117, and freezing prescriptions and rail fares. She attributed the ability to fund these initiatives to the UK's status as the fastest-growing economy in the G7.
Throughout August, children in England will also be entitled to free bus travel, providing an alternative for families who cannot travel by car. The Government plans to launch a Great British Summer Savings deal finder soon to help families identify participating businesses and offers.
