The Treasury has estimated that Chancellor Rachel Reeves' 'Great British Summer Savings' scheme will cost around £300 million. The initiative involves a temporary reduction in VAT on tickets for summer attractions such as museums and zoos, with the aim of making family outings more affordable while supporting the hospitality sector.
Details of the Scheme
Under the plan, VAT on ticket prices for both adults and children will be cut from 20 per cent to 5 per cent during the summer holidays. This applies to fairs, theme parks, zoos, museums, cinemas, concerts, soft play areas, theatres, and children's meals in restaurants and cafes. The savings are expected to be passed on to customers, resulting in discounts ranging from 20 per cent to 5 per cent.
Official Costing
The Office for Budget Responsibility will provide a final costing of the measures in the next budget. Chancellor Reeves announced the scheme in the Commons, stating: 'I am launching the Great British Summer Savings Scheme to help families and support our hospitality sector, so I can today announce a temporary cut in the rate of VAT on summer attractions from 20 per cent to five per cent over the summer holidays.'
Political Reaction
Daisy Cooper, the Liberal Democrats' Treasury spokesman, claimed credit for the initiative, noting that her party had been calling for a temporary VAT cut for hospitality and leisure for six months. She criticised the government for initially dismissing the proposal as impossible.
