Families heading to theme parks, zoos and museums this summer may see cheaper tickets as a temporary VAT cut takes effect on Thursday, but many doubt the tax break will ease the squeeze on household budgets.
The government is reducing VAT from 20% to 5% on attractions and children's meals from 25 June until 1 September, timed to coincide with school holidays in Scotland, Northern Ireland, England and Wales. Chancellor Rachel Reeves told the BBC that as a mum she recognises summer holidays can be “quite expensive” and a “juggling act”, adding the purpose was to “help people make those precious memories during the summer holidays, but not having to fork out too much for it”.
“Temporary VAT cut from 20% to 5% on family attractions and kids' meals begins 25 June, but critics call savings negligible.”
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, describing the potential savings as “negligible” if passed on. He said the best option for his family is a theme park pass covering Legoland, Chessington World of Adventure and Sea Life centres, and that more useful measures would address energy and fuel costs. “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 lead to an “average saving of around £10 per UK household”. The cuts also include unlimited free bus travel for children in England throughout August. Reeves argued that for those reliant on buses, “unlimited bus travel for kids is going to be worth more than £10”. She pointed to other government steps such as freezing prescription charges, freezing 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 reduction applies to children's meals in restaurants as well as kids' and family tickets for cinemas, theatres, concerts, shows and exhibitions.
With schools breaking up and families planning their summer, the question remains whether the temporary cut will deliver meaningful relief – or prove just a drop in the ocean of rising costs.