Chancellor Rachel Reeves has pledged to reduce the cost of trips to Legoland and soft play centres this summer as part of a 'Trumpflation' package announced in the Commons. The VAT on family attractions will be cut from 20% to 5% from June to September, alongside duty reductions on chocolate and biscuits.
Summer Savings Package
Ms Reeves also unveiled a 'Great British Summer Savings' scheme, which includes free bus travel for children in England during the August school holidays. Import tariffs on more than 100 products are to be suspended, saving consumers over £150 million annually. The full list of products, expected to include biscuits, chocolate, dried fruit and nuts, will be published next week.
However, the Chancellor did not announce immediate help with rising energy bills. The household energy price cap is predicted to increase by £209 a year from July due to global oil and gas price rises following the Strait of Hormuz closure. The Government will wait until September before finalising any targeted support for winter.
Price Caps Ruled Out
Ms Reeves avoided mentioning plans for price caps on shopping essentials after a backlash from supermarkets, the Bank of England, and politicians. Treasury Chief Secretary Lucy Rigby confirmed: 'We're not introducing mandatory price caps.' Discussions with supermarkets aimed to put downward pressure on prices instead.
Bank of England Governor Andrew Bailey told MPs that price caps were 'not sustainable' in the long run. M&S chief Stuart Machin called the idea 'completely preposterous', urging the Government to reduce tax and red tape burdens driving up costs. Justin King, former Sainsbury's boss, noted that 'competition is what keeps prices honest'.
The row overshadowed better-than-expected inflation figures, which fell from 3.3% in March to 2.8% in April, with food inflation declining. Retailers were 'taking a big responsibility' to minimise price increases, Mr Machin added.
