The summer just got a little more affordable for families across the UK, as a VAT cut on children's meals and family day out activities comes into effect. From 25 June, many businesses have pledged to pass on the savings from the reduced Value Added Tax (VAT) rate of 5% on eligible services, including kids' menu items in restaurants and tickets for cinemas, theatres, concerts, and attractions.
Under the 'Great British Summer Savings' scheme, families can look forward to cheaper days out at amusement parks, museums, zoos, soft play centres, and adventure parks. Big brands like Butlin's, Burger King, Wetherspoons, Picturehouse, Everyman Cinemas, Vue, McDonald's, KFC, and Haven Holidays have committed to sharing the VAT savings with their customers.
Haven Holidays alone expects to return up to £5 million to families across its 39 parks through reduced prices and additional vouchers, such as a £7.50 voucher for children purchasing a Play Pass.
Industry bodies like the British Chambers of Commerce (BCC), the Federation of Small Businesses (FSB), UKHospitality, and the Society of London Theatre (SOLT) have welcomed the policy, aimed at making summer holidays more accessible and affordable for families nationwide. Prime Minister Keir Starmer and Chancellor Rachel Reeves have highlighted the importance of giving families a break from cost of living pressures.
While immediate savings will be felt by consumers, the long-term economic impact is also being closely watched. Businesses hope to see increased footfall and revenue, safeguarding jobs and supporting recovery. For households, the direct saving on discretionary spending could free up funds for other purchases or contribute to household savings.
Source: HM Treasury