Theme parks, zoos and museums across the UK will charge less VAT from Thursday as a temporary cut from 20% to 5% kicks in for the school summer holidays — a measure the government says will ease the cost of living, but that families and experts alike have dismissed as a drop in the ocean.
The reduction, announced by Chancellor Rachel Reeves, applies to children’s meals served in restaurants as well as family tickets for cinemas, theatres, concerts, shows and exhibitions. It runs from 25 June until 1 September, timed to coincide with schools breaking up in Scotland at the end of this month, followed by Northern Ireland, England and Wales in July.
“VAT on family attractions and kids' meals cut from 20% to 5% for summer, but critics call it negligible.”
Reeves told the BBC that as a mum she recognises summer holidays can be "quite expensive" and a "juggling act" for parents who have to take time off work to keep children entertained. The purpose, 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, from Brighton, who goes to theme parks regularly with his family, said he does not expect much from the VAT cut. "These kind of attractions are quite expensive in the first place," he said, adding that the savings, if passed on, would be "negligible" and only benefit those who visit as a one-off. His family prefers a theme park pass for Legoland, Chessington World of Adventure and Sea Life centres. "How the government can say this is going to result in any household saving is a mystery," he said.
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".
The package also includes unlimited free bus travel for children in England during August. Reeves said that for those reliant on the bus, "unlimited bus travel for kids is going to be worth more than £10". She pointed to other government measures — freezing prescription charges and rail fares, and providing energy bill relief — as additional help with cost-of-living pressures.
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 begins as schools start to break up, but for many families the question remains whether the promised relief will reach their pockets.