A temporary cut in VAT on theme parks, zoos and kids’ meals came into force on Thursday, as Scotland’s schools break up for summer – but families and economists warned the savings would be too small to ease the cost of living.
The government reduced VAT from 20% to 5% on family attractions and children’s meals in restaurants, along with tickets for cinemas, theatres and exhibitions. The measure, which runs until 1 September, also includes unlimited free bus travel for children in England throughout August.
“Temporary VAT cut to 5% on attractions and kids' meals begins, but critics call savings negligible.”
Chancellor Rachel Reeves told the BBC that as a mum she recognises summer holidays can be “quite expensive” and a “juggling act”. She said the purpose of the cut was to “help people make those precious memories during the summer holidays, but not having to fork out too much for it”.
But Alan, 42, from Brighton, who visits theme parks regularly with his family, said he does not expect much. “These kind of attractions are quite expensive in the first place,” he said, adding that any savings passed on would be “negligible” and only benefit those who go as a one-off. He said the best option for his family was a theme park pass for Legoland, Chessington World of Adventures and Sea Life centres. “How the government can say this is going to result in any household saving is a mystery,” he added.
Helen Miller, director of the Institute for Fiscal Studies think tank, previously estimated the measures would equate to an “average saving of around £10 per UK household”. Alan said more useful measures would address energy and fuel costs.
Reeves pointed to other government actions – freezing prescription charges, freezing rail fares and providing energy bill relief – as also helping with cost of living pressures. She told the BBC that “unlimited bus travel for kids is going to be worth more than £10”, especially for those reliant on buses.
Rob Parkinson, chief executive of the Family Holiday Charity, said the government, industry and voluntary sector needed to “work together to identify and implement an enduring solution” for families. The VAT cut is set to end on 1 September, leaving the question of what happens after the summer holidays.