Reeves Cuts VAT to 5% on Summer Family Outings in £300 Million Cost-of-Living Push
Updated
Updated · BBC.com · May 21
Reeves Cuts VAT to 5% on Summer Family Outings in £300 Million Cost-of-Living Push
15 articles · Updated · BBC.com · May 21
A temporary VAT cut from 20% to 5% will run from late June until 1 September on family attraction tickets and children's meals, covering theme parks, zoos, museums, cinemas, theatres and soft-play venues.
The £300 million "Great British Summer Savings" package also gives children aged 5 to 15 free bus travel in England during August and cuts import taxes on more than 100 food products.
Businesses will decide whether to pass on the VAT and tariff savings, with the Institute for Fiscal Studies estimating the measures are worth only about £10 per UK household on average.
Reeves pitched the package as relief for families and hospitality as fuel, energy and food costs rise after disruption linked to the Iran war, while the government tries to regain the political initiative.
Is this temporary summer VAT cut just a political plaster on the hospitality industry's deep economic wounds?
Is this £300M VAT cut a smart boost for families, or a risky move that ignores warnings from global economists?