Reeves serves up summer of savings with VAT cut on family days out

A temporary VAT reduction lowers the rate on selected family activities from 20% to 5% under a “Great British Summer Saving Scheme.” The reduced rate applies to fairs, zoos, museums, cinemas, and children’s meals in restaurants from 25 July through early September. Fuel duty rises are ruled out, tariffs on more than 100 supermarket food lines are suspended, and the tax-free mileage allowance is increased by 10p per mile, backdated to April 2026. Free local bus travel for children aged five to 15 runs throughout August in England. The measures target household pressure and come as hospitality and leisure businesses face closures amid higher costs.

"VAT on a swathe of family activities will fall from 20 per cent to 5 per cent under a new “Great British Summer Saving Scheme”. The reduced rate will apply to fairs, zoos, museums, cinemas and children's meals in restaurants, running from the start of the Scottish school holidays on 25 July through to early September."

"Reeves also ruled out the long-trailed rise in fuel duty, suspended tariffs on more than 100 supermarket food lines and lifted the tax-free mileage allowance by 10p per mile, backdated to April 2026. Free local bus travel for children aged five to 15 will operate throughout August in England, in what the Treasury framed as a co-ordinated push to ease pressure on households during the school break."

"The measures land at a critical moment for the country's small-business community, particularly the hospitality and leisure operators who have spent the past three years absorbing rising wage bills, energy costs and business rates. Trade bodies have warned of a “tidal wave” of closures unless ministers act, with three pubs and restaurants shutting their doors every day so far this year."

"“It's encouraging to see the Chancellor's commitment to a summer of savings with the VAT cut on children's meals,” she said. “Providing an important boost”"

Read at Business Matters