The rate of VAT on summer attractions will be temporarily cut from 20% to 5%, the Chancellor announced on Thursday.
The move will apply to attractions such as theme parks, zoos and museums, as well as cinemas and theatres, from June 25 to September 1.
In a Commons statement, the Chancellor also confirmed that children aged between five and 15 would receive free bus travel across England during August.
She added: “I recognise that what matters for families is not just getting by but being able to enjoy time together without worrying about the next bill. That is why I am launching the Great British Summer Savings scheme to help families and support our hospitality sector.
“So I can today announce a temporary cut in the rate of VAT on summer attractions from 20% to 5% over the summer holidays. This will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums.
“It will include children’s tickets for cinemas, concerts, soft play and the theatre, and it will cut the cost of children’s meals in restaurants and cafes from 20% VAT to 5% as well.
“These changes will apply across the UK from the start of the Scottish school holidays on June 25 and run until the end of school holidays in England, Wales and Northern Ireland on September 1.”
The move to cut the cost of summer attractions has been welcomed by business leaders.
Tina McKenzie, Federation of Small Businesses Policy Chair, said: “Anything that helps get families out spending this summer is good news for the restaurants, pubs, soft plays and attractions that have spent years fighting rising costs and shrinking margins.
“With 44% of small hospitality firms based on or near the high street, a VAT cut should help put bums on seats and bring life into our town centres this summer.
“With families switching from international travel to domestic travel this summer, they’ll be more people out and about on our local high streets. For many small firms, these next few months matter enormously after a bruising period of rising costs and squeezed consumer spending. Families will make extra purchases, such as drinks and merchandise, which is likely to be the biggest help to small businesses’ bottom lines.”
“Confidence in the hospitality sector is dire, and 94% of small businesses in those sectors saw their costs rise over the past three months, with tax one of the biggest drivers of that (61%). A further 35% of hospitality businesses expect to contract over the next twelve months.
“A strong summer could be the difference between staying afloat and shutting up shop for some businesses.
“Smaller hospitality firms have spent years absorbing rising costs wherever they can. Measures that help bring customers back through the door and give firms more room to invest are badly needed.
“As people plan summer days out, we’d urge them to back the small local pubs, cafés, attractions and hospitality venues that make our communities special.”
