Chancellor Rachel Reeves said the VAT rate – covering tickets for zoos, museums, fairs, and theme parks – will be cut from 20% to 5% from June until September
Chancellor Rachel Reeves announced the ‘Great British Summer Savings’ scheme(Image: James Veysey/Shutterstock)
Rachel Reeves promised to slash ticket prices for fairs, theme parks and zoos this summer to ease the cost of living burden on families. The Chancellor said VAT on summer attractions will be cut from 20% to 5% alongside children’s meals in restaurants as part of a “Great British Summer Savings” scheme.
Estimated to cost around £300million, it will also include free bus travel for children between the ages of five and 15. Ms Reeves told MPs: “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. I am launching the Great British Summer Savings Scheme to help families and support our hospitality sector.”
Keir Starmer also said the package of summer cost-of-living measures would allow “families to enjoy moments that matter without the same level of financial strain”.
The Prime Minister said it was “not right” that “for too many families those things – a trip to the seaside, a visit to the zoo, a bus ride into town for a day out, even a simple treat at the end of the week – are starting to feel out of reach”. He added: “This summer, we are making it easier and more affordable for families to get out, spend time together, and make memories they will cherish for life.”
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The VAT cut will apply to both children and adult ticket prices for summer attractions including fairs, museums, zoos, wildlife parks, amusement parks and circuses. The overall package will come into force from June 25 and expire on September 1.
The Chancellor added: “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.”
She also confirmed there would be no rise in fuel duty while tariffs will be suspended on over 100 supermarkets items, including beans and crisps, as the Treasury seeks to cushion the blow to families from the Iran war fallout.
The Chancellor, who again lashed out at Donald Trump ‘s Middle East conflict being a “mistake”, also insisted the government stands “ready to act” on energy bills. The household energy price cap is predicted to rise by £209 a year from July after the closure of the Strait of Hormuz pushed up global oil and gas prices.
Ms Reeves, who has ruled out universal support on the scale of the response to the Russian invasion of Ukraine in 2022, told MPs: “I’ve been clear eyed about my duty to do what I can to support families and businesses, to be responsive to a changing world and responsible in the national interest.
“Next week, Ofgem will confirm the level of the energy price cap that will apply from July. I know that any increase will be felt by families. Because of the decision that I made at the budget last year to cut £150 from energy bills, we have lessened the impact of rising prices and current external forecasts suggest that the cap from July will be at a similar level to the cap in April last year.
“We stand ready to act if market conditions worsen significantly later this year and I have been leading cross-Government contingency work on design of potential future targeted and temporary support for businesses.”
Ms Reeves also said she expected supermarkets to pass on savings from reduced tariffs to their customers “in full”. The Chancellor told MPs: “I know the cost of the weekly shop is often one of the biggest worries for families, so last month I met with supermarkets to urge them to do all they can to keep prices low.
“And today I am taking action by suspending tariffs on over 100 different foods sold in supermarkets. And I am clear that I expect supermarkets to pass these savings on in full to their customers.”
She added: “I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense, so I am bringing forward tough new powers so that the Competition and Markets Authority and other regulators can take action when firms break the rules.”
Responding to the Chancellor’s package, General Secretary of the Trades Union Congress (TUC) Paul Nowak said: “Any practical steps to help families with the cost-of-living crisis are a good thing.”
But he added: “With the new energy price cap set to be announced next week, the government will need to be bolder to shield workers and households from Trump’s illegal war.”
Kate Nicholls, chair of UKHospitality, said: “It’s good to see the Government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence. A 5% rate of VAT for family admissions to visitor attractions, children’s meals and soft play is a positive step to help families enjoy a great British break this summer.
“If there is scope to further support families by including accommodation in this reduced rate, I would encourage the Chancellor to do so to help tackle one of the biggest costs of a family holiday.”
Chief executive of Child Poverty Action Group Alison Garnham added: “The Chancellor is right to put children’s wellbeing at the heart of today’s summer support package. But with family budgets down to the bone, we know there is much more to do to give every child the best start in life. The next step must be sustained investment in families to deal with the cost of living and drive down child poverty.”
Fiona Eastwood, Chief Executive Officer of Merlin Entertainments said: “This is great news for the UK’s visitor economy and for families planning trips this summer. As the season gets underway, this timely move from the Government will make it easier for people to get out, explore and create memorable moments together at destinations across the country.
“Merlin will be applying this VAT cut to both admission tickets and children’s meals, adding more value to days out and short breaks at our 20 UK attractions. We’re excited to welcome more families to our resort theme parks and immersive experiences for a summer packed with fun, play and lasting memories.”
Paul Kelly, Chief Executive Officer of the British Association of Leisure Parks, Piers and Attractions said: “This is a very welcome and timely boost for the UK’s visitor attraction sector. It will help make great days out more affordable for families, while giving our members added confidence as they head into the peak summer season. The businesses we represent are at the heart of communities across the country, supporting jobs and local economies, and this measure recognises their importance
“Our members stand ready to pass on this benefit and deliver brilliant, memorable experiences for visitors of all ages. We look forward to seeing more people enjoying the very best of what the UK has to offer.”
Cinema bosses also welcomed the plans. Mark Way, President AMC Europe & Managing Director, Odeon Cinema Groups said: “We believe these measures will continue to help drive strong demand and we’re excited that our guests will be able to enjoy the big screen for less over this blockbuster summer.”
The VAT rate on eligible activities will be cut from 20% to 5% and applies across England, Wales, Scotland and Northern Ireland. The reduced rate will apply 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 a range of attractions, including: amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.
Rachel Reeves writes for The Mirror
I know for a lot of families across the country budgets are stretched.
The war in Iran is not our war, and I’ve not shied away from my criticism of it. However, it is having an impact at home. Prices have been pushed up, and when that happens it is life’s little treats that can fall by the wayside, such as a meal out, a family holiday or a day trip making memories with your kids.
Since the Iran conflict I have been clear all my decisions will be in the national interest and to support working people. My number one priority is protecting households from rising costs, and this summer I want every family to be able to enjoy themselves.
That’s why we’ve launched the Great British Summer Savings scheme, slashing VAT from 25th June until 1st September, on children’s menu restaurant meals and children’s tickets for cinemas, theatres and concerts, across the UK.
Great British Summer Savings will mean adults and children can also enjoy amusement parks, wildlife parks, museums, soft play centres and a wide range of other attractions for less. This is real money off the things families actually spend on over summer.
We’re also helping kids under 16 in England with free bus travel throughout August — making it more affordable for people to get out and about.
And we’re making targeted cuts to tariffs on products including biscuits, chocolate, dried fruit and nuts, because I know that the cost of the weekly shop is often one of the biggest worries for families. This builds on our work to cut energy bills, and protect motorists alongside freezing prescription charges and rail fares.
In moments like this, the choices governments make matter. The right choices are the ones that keep us on course: stability in the public finances, action to keep costs down, and investment to build our resilience.
As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger more secure Britain.
