Rachel Reeves slashes VAT price for summer time sights – from theme parks to zoos
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)
VAT on summer attractions will be temporarily slashed, Rachel Reeves has announced as part of a summer cost of living package.
The Chancellor said the rate – covering tickets for zoos, museums, fairs, and theme parks – will be cut from 20% to 5% from June until September. The ‘Great British Summer Savings’ scheme will also include free bus travel for children between the ages of five and 15 to ease the burden on families.
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.”
The Chancellor said this will apply to ticket prices for both adults and kids covering attractions including fairs, theme parks, zoos and museums. It will come into force from June 25 and expire on September 1. She 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.”
READ MORE: Rachel Reeves to drive down prices of over 100 food staples in cost of living boost
Donald Trump’s Iran branded a ‘mistake’
Ms Reeves also confirmed there would be no rise in fuel duty – as originally planned – while tariffs will be suspended on over 100 supermarkets items. It comes as the Treasury seeks to cushion the blow to families from the fallout of the Iran conflict.
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.”
Help to cut food prices
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.”
VAT cut is boost for hospitality sector
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.”
