New VAT rates have come into effect from today, September 1, 2026, as the temporary reductions introduced under the Labour government's Great British Summer Savings scheme have now ended. The scheme, which ran from 25 June to 1 September 2026, had slashed VAT on eligible activities including children's meals in restaurants, children's tickets for theatres and cinemas, and tickets for attractions such as soft play centres, adventure centres, and theme parks.
Scheme concluded after summer period
The Great British Summer Savings initiative was announced by former Chancellor Rachel Reeves as a "targeted and temporary scheme to reduce the costs of children's meals in restaurants, children's tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks". Ms Reeves, who has since been replaced by Chancellor John Healey, said the scheme was intended to "help families enjoy a day out for less".
With the arrival of the ninth month of the year, the old VAT rates have now kicked back in, meaning families will again pay the standard rate on these goods and services. The end of the scheme coincides with the return to school for many children across England, marking the conclusion of the summer holiday period.
Prime Minister's comments at launch
At the time of the scheme's announcement, then-Prime Minister Keir Starmer spoke about the importance of summer holidays and the financial pressures facing families. He said: "When I think about the summer holidays, I think about the Lake District — where I went as a child and later made memories with my own family."
Mr Starmer added: "I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets. This summer we're cutting the cost of a day out together - free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kid's attractions - so families can afford more time together."
Mr Starmer has since been succeeded by Andy Burnham as Prime Minister.
Chancellor's rationale for the scheme
Ms Reeves explained the reasoning behind the temporary VAT reduction at the time of its introduction. She said: "Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK."
The former Chancellor also highlighted other support measures already in place, including freezing fuel duty, taking off £117 off energy bills, and freezing prescriptions and rail fares. She said: "We are able do this because we have made the right choices, resulting in the UK having the fastest growing economy in the G7, with inflation going down. I know the cost of living is still a number one concern for households. Our economic plan is the right one, supporting families and businesses and building a stronger and more secure Britain."
With the scheme now concluded, families and businesses will need to adjust to the return of standard VAT rates on children's meals, theatre and cinema tickets, and attraction admissions. The impact of the end of the temporary reduction will be felt most acutely by families planning autumn half-term outings, as the cost of days out will rise once more.
