UK VAT cut to 5% for family days out

A temporary tax cut designed to reduce the cost of family days out and children's meals has taken effect across the United Kingdom. The "Great British Summer Savings" scheme, which began on June 25, slashes the Value Added Tax (VAT) on eligible purchases from 20% to 5% and will run until September 1.

Announced by Chancellor of the Exchequer Rachel Reeves, the initiative is part of a government package aimed at easing cost-of-living pressures. Prime Minister Keir Starmer said the measure addresses the strain on household budgets, allowing families to afford meaningful experiences together. The Treasury estimates the program will cost approximately £300 million.

The reduced VAT rate applies to children's meals served and consumed in restaurants, children's and family tickets for cinemas, theatres, concerts, and exhibitions, and admission tickets to a wide range of attractions including amusement parks, zoos, museums, and soft play centres. The scheme is voluntary for businesses and applies across England, Wales, Scotland, and Northern Ireland.

Major companies have already begun implementing the savings. Attractions such as Peppa Pig World, Alton Towers, and Legoland are...