Overview
- The package, announced by Chancellor Rachel Reeves on Thursday, cuts VAT from 20% to 5% on children’s meals and family tickets for cinemas, theatres and attractions from June 25 to September 1.
- Every child aged five to 15 in England will be able to travel free on participating local buses with unlimited journeys and no registration required from August 1 to August 31.
- The Treasury has costed the measures at about £300 million overall, with the free bus element estimated at more than £100 million, and will partly fund the plan by changing tax rules for oil and gas foreign branches.
- Ministers expect businesses to pass the VAT and tariff savings to customers but cannot guarantee full pass-through, prompting industry groups to welcome the boost while urging a longer‑term fix for hospitality and energy costs.
- The package follows earlier measures such as a fuel duty freeze and average energy bill cuts and leaves open the possibility of further targeted support if the energy price cap rises later this year.