From 25 June to 1 September 2026, VAT will be slashed on eligible activities, to helping families enjoy the weekend treats, the days out, the small plans that make life enjoyable during the cost of living squeeze while supporting the businesses that depend on summer footfall.
Great British Summer Savings will be a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks helping families enjoy a day out for less.
In a further boost for households, children aged five to 15 in England will be able to travel free on local bus services throughout August – making it easier and more affordable for people to get out and about.
The scheme is estimated to cost about £300m. The Chancellor has been clear we are taking a targeted and responsible approach, consistent with our strategy to reduce borrowing and debt and meet the non-negotiable fiscal rules.
Prime Minister Keir Starmer said:
When I think about the summer holidays, I think about the Lake District — where I went as a child and later made memories with my own family.
I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.
This summer we’re cutting the cost of a day out together - free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kid’s attractions - so families can afford more time together.
Rachel Reeves, Chancellor of the Exchequer, said:
Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK.
This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, freezing prescriptions, fuel duty and rail fares.
We are able do this because we have made the right choices, resulting in the UK having the fastest growing economy in the G7, with inflation going down.
I know the cost of living is still a number one concern for households. Our economic plan is the right one, supporting families and businesses and building a stronger and more secure Britain.
Reeves also announced this week that the government is reforming the foreign branches exemption—a rule that allows companies to offset overseas losses—so multinationals can’t use it to reduce the tax they pay in the UK.
We expect these reforms to raise hundreds of millions a year and fund the package of measures set out today. Final costings for all measures will be published at the next Budget following certification from the Office for Budget Responsibility.
The support for families was announced by the Chancellor as she updated the House of Commons today on the government’s economic response to the Middle East. She reiterated that the Government has the right economic plan, with inflation falling faster than expected and the UK being the fastest-growing economy in the G7 at the start of the year - with the IMF upgrading its growth forecast for the UK.
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.
This money saving package supports families, while also supporting businesses through increased footfall. The government expects businesses to pass on VAT savings to customers.
Guidance for businesses in scope of the policy has been published by HMRC which outlines how businesses can operate the scheme.
The Chancellor has also announced a new £350 million Critical Chemicals Resilience Fund that will support strategically important producers and sites, strengthen critical supply chains and help support thousands of skilled jobs, alongside a ceramics package worth £120 million, which will back energy efficiency and decarbonisation in a sector vital to UK manufacturing and local communities.
The government will continue to work in partnership with these sectors on the wider challenges they face, including regulatory costs and the potential for action by the Trade Remedies Authority on unfair overseas competition.
She also confirmed a 10p per mile increase in tax‑free mileage rates for the 2026-27 tax year, backdated to April 2026. On average, this will save around £120 for a worker doing 6,000 business miles, using their own vehicle for work. This builds on the Chancellor’s announcement yesterday that she is extending the fuel duty cut until the end of the year - saving motorists £120 since 2025.
This comes on top of action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage.
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.
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 children’s meals and tickets is a good step to help families enjoy a great British break this summer.
I look forward to working with the Government to ensure it is simple to apply and targeted effectively to reduce costs for families.
Mark Way, President AMC Europe & Managing Director, Odeon Cinema Groups said:
ODEON welcomes today’s announcement focused on making cinema even better value and support any measures that seek to help cinema-goers, the industry and consumers more broadly.
As the UK’s largest cinema operator, 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.
Tim Richards CBE, Founder and CEO, Vue (largest cinema operator in UK by market share), says:
As we anticipate an incredible summer of family films, we welcome this step from the government to help more families enjoy the Big Screen Experience over the holidays.
Read the full article
