Rachel Reeves has confirmed a "temporary" VAT rate of five per cent, effective from Thursday June 25 onwards. The temporary move from the Labour Party Chancellor will last until 1 September 2026 inclusive.
Details of the Reduced VAT Rate
This brief explains a temporary reduced rate of VAT of 5% that will apply to certain supplies of children's meals, children's admission to theatres, cinemas, concerts, exhibitions and shows, and all admission tickets to certain attractions suitable for families with children.
The reduced rate replaces the standard rate of VAT of 20% for supplies within scope during this period. It applies to restaurants, cafés and similar catering establishments, as well as cinemas, theatres, exhibition and performance venues.
Scope of the Reduced Rate
It also applies to operators of circuses, fairs, amusement parks, theme parks, adventure parks and water parks, zoos and other animal attractions, soft play centres, observation attractions and certain other family-focused attractions. Additionally, it applies to museums and similar cultural attractions.
The reduced rate applies to children's meals, children's cinema, theatre, show and concert tickets, and admission to certain attractions.
Government's Statement
Ms Reeves 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."
"This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, freezing prescriptions, fuel duty and rail fares."
"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."
