Temporary VAT cut makes family days out cheaper this summer

A temporary reduction in VAT on family attractions and children's meals has come into force today, cutting the rate from 20 per cent to 5 per cent for the duration of the school summer holidays.

The measure, which runs from 25 June until 1 September, applies to admission tickets for theme parks, zoos, museums, circuses, fairs, adventure parks, soft-play centres, observation attractions, farm visitor attractions and nature reserves. Children's meals eaten on restaurant premises also qualify for the reduced rate.

Chancellor Rachel Reeves said the cut would help families make precious summer memories without having to fork out too much. The measure begins ahead of Scottish schools breaking up at the end of June, followed by Northern Ireland, England and Wales in July. Free unlimited bus travel for children in England during August is also included in the package.

Helen Miller, director of the Institute for Fiscal Studies, estimated the VAT reduction would deliver an average saving of around £10 per UK household. Some families and charities have questioned whether the tax saving will be passed on to customers, though the Chancellor pointed to the bus travel measure as offering greater value for those who rely on public transport.

Sources

• BBC.co.uk