Chancellor Rachel Reeves has confirmed a temporary tax cut aimed at lowering the cost of family outings during the summer holiday period.
The UK Government will reduce VAT from 20 percent down to 5 percent for selected attractions. This change will run from the end of the school term in Scotland in late June until schools reopen in England, Wales, and Northern Ireland on 1 September.
The aim is to make leisure activities more affordable for families while also supporting businesses in the hospitality and entertainment sectors.
What Will Be Cheaper for Families
The VAT reduction applies to a wide range of family focused activities and services.
Families can expect lower prices for:
• Entry tickets for children and adults at theme parks, fairs, museums, zoos, soft play centres, amusement parks, nature reserves, wildlife parks, observation attractions, circuses, and adventure parks
• Cinema tickets, theatre shows, concerts, exhibitions, and other live performances for children and families
• Children meals served in restaurants and cafes for dine in service
Businesses will decide whether they pass the savings directly to customers, but the expectation is that many will reduce prices during the period.
Additional Cost of Living Measures
Alongside the VAT reduction, the government also announced further support measures:
• Free bus travel for under 16 year olds in England during August
• Lower import taxes on selected basic food items under a summer savings initiative
These steps are part of a wider effort to ease pressure on household budgets during a period of rising living costs.
Economic Context and Expected Impact
The announcement comes at a time when households are facing higher fuel prices and concerns about food and energy costs. Global supply disruptions have also added pressure to everyday expenses.
According to analysis from the Institute for Fiscal Studies, the average benefit to households may be modest, with estimated savings of around £10 per household across the UK.
Despite this, the government argues that the policy will help families enjoy more affordable holidays while also boosting visitor numbers for attractions and restaurants.
