VAT reductions on summer attractions have been announced by Rachel Reeves as part of a cost of living support package for the summer months. The Chancellor revealed that the VAT rate on tickets for various attractions like zoos, museums, fairs, and theme parks will be decreased from 20% to 5% between June and September. This initiative, known as the ‘Great British Summer Savings’ scheme, will also offer complimentary bus travel for children aged five to 15 to alleviate financial pressure on families.
In a statement to Members of Parliament, Ms. Reeves emphasized the importance of enabling families to spend quality time together without financial concerns. The implementation of the Great British Summer Savings Scheme aims to assist families and bolster the hospitality sector.
The reduced VAT rate will be applicable to both adult and children’s ticket prices for attractions such as fairs, theme parks, zoos, and museums. This measure will take effect from June 25 and will conclude on September 1. Ms. Reeves highlighted that the scheme will encompass children’s tickets for cinemas, concerts, soft play areas, and theaters, as well as reduce the VAT on children’s meals in restaurants and cafes from 20% to 5%.
Furthermore, the Chancellor confirmed the suspension of fuel duty hikes, originally planned, and the removal of tariffs on over 100 supermarket items. These actions come amid efforts by the Treasury to mitigate the impact on families from the aftermath of the Iran conflict.
Ms. Reeves reiterated the government’s readiness to address energy bill concerns, particularly with the expected rise in household energy costs due to global oil and gas price hikes following the closure of the Strait of Hormuz. She underscored her commitment to supporting families and businesses, acknowledging the challenges posed by changing global circumstances.
Moreover, the Chancellor emphasized the importance of supermarkets passing on the benefits of reduced tariffs to consumers and warned against companies exploiting the situation for excessive profits. Stringent measures are being introduced to ensure compliance with fair pricing practices.
Industry responses to the VAT reduction were positive, with Kate Nicholls from UKHospitality commending the move to lower prices and boost consumer confidence. However, calls were made to include accommodation in the reduced VAT rate to further support families during summer breaks.
Alison Garnham, Chief Executive of Child Poverty Action Group, praised the focus on children’s well-being in the support package but stressed the need for sustained investment in families to address the cost of living and reduce child poverty.