New VAT rates have come into effect again from 1 September 2026, marking the end of a temporary reduction scheme aimed at helping families with the cost of summer activities.
Between 25 June and 1 September 2026, the UK government implemented a targeted VAT cut on eligible activities, including children’s meals at restaurants, children’s tickets for theatres and cinemas, and entry to attractions such as soft play centres, adventure parks, and theme parks. This initiative was launched under the Labour government as part of the ‘Great British Summer Savings’ scheme.
Rachel Reeves, the former Chancellor who introduced the measure, described it as a ‘‘targeted and temporary scheme’’ designed to ‘‘reduce the costs of children’s meals and tickets for family attractions’’. She emphasised that the scheme aimed to help families enjoy more affordable days out during the summer holidays.
READ MORE: Octopus Energy Acquires Danish Tech Startup BD Energy to Enhance Global Power Trading
READ MORE: Midlands Motorway Drivers Alerted to Strict Enforcement of Variable Speed Limits
At the time of the announcement, then-Prime Minister Keir Starmer highlighted the importance of family time, recalling his own childhood visits to places like the Lake District. He acknowledged the pressures families face due to the ongoing cost of living crisis and said: ‘‘This summer we’re cutting the cost of a day out together – free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kids’ attractions – so families can afford more time together.’’
Following Mr Starmer, Andy Burnham took over the role of Prime Minister, while John Healey succeeded Ms Reeves as Chancellor. Ms Reeves had expressed optimism about the scheme’s broader benefits, stating: ‘‘Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK.’’
She also noted the wider economic context, mentioning other government support measures such as freezing fuel duty, reducing energy bills by £117, and freezing prescription and rail fares. Ms Reeves credited these actions and the government’s economic policies for the UK having the fastest-growing economy among the G7 nations and a declining inflation rate.
With the end of the VAT reduction period, families will now face the return of standard VAT rates on these activities, which may impact decisions about leisure spending as households continue to manage budget pressures.