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UK

VAT cut on family days out begins – but many say savings are 'negligible'

VAT on family attractions cut to 5% for summer, but critics say savings are negligible and many families will see little benefit.

UK

VAT cut on family days out begins – but many say savings are 'negligible'

Families across the UK hoping for cheaper trips to theme parks, zoos and museums this summer may be left disappointed, as a temporary VAT reduction from 20% to 5% on family attractions and children’s meals came into force on Thursday – but critics warn the savings are too small to make a real difference. The cut, which runs from 25 June to 1 September, coincides with the start of school holidays in Scotland, followed by Northern Ireland, England and Wales in July. Chancellor Rachel Reeves told the BBC that summer holidays can be a ‘juggling act’ for parents, who must take time off work to keep children entertained. The purpose of the VAT reduction, she said, 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, a regular visitor to theme parks from Brighton, said he does not expect much from the cut. ‘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. For his family, the best option remains a theme park pass, which they use at Legoland, Chessington World of Adventures and Sea Life centres. Helen Miller, director of the Institute for Fiscal Studies think tank, previously estimated the average saving per UK household at around £10. Alan questioned how the government can claim such a figure will result in any household saving, calling it ‘a mystery’. He said more useful measures would address energy and fuel costs. The package also includes unlimited free bus travel for children in England during August. Reeves argued that for families reliant on buses, this ‘is going to be worth more than £10’. She pointed to other government measures, including freezing prescription charges and rail fares, and providing energy bill relief. 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 applies to children’s meals in restaurants, as well as family tickets for cinemas, theatres and concerts, though critics doubt all savings will reach consumers.

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