UK to cut VAT on theme parks and children's meals this summer
Chancellor Rachel Reeves announced a set of measures aimed at easing cost-of-living pressures. VAT will be cut from 20% to 5% over the summer on selected family attractions. The package is expected to cost the Treasury about £750 million a year.
The package announced by HM Treasury will run from 1 June 2026 to 30 September 2026. The VAT cut will apply to theme parks, zoos, aquariums and indoor play centres, while children's meals at accredited restaurants will also move to the lower rate.
In her House of Commons statement, Reeves said the government was 'taking deliberate steps to protect families'. According to a preliminary Treasury analysis, the measure could save a family of four about £240 over the summer season. Industry bodies described the decision as 'positive but overdue'.
The opposition Conservatives argued that the cut would not deliver a 'lasting solution' to inflation, which remains elevated. Economists at the Bank of England estimate that the reduced VAT could shave around 0.2 percentage points off headline inflation in the short term.
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