Visitor attractions across the UK are set for a potential boost in seasonal attendance following a new government initiative aimed at reducing costs for families over the school holidays.
The newly announced scheme targets operational tax rates in the leisure sector, directly impacting admission prices and food offerings at sites nationwide.
From 25 June to 1 September 2026, the temporary Great British Summer Savings scheme will lower the VAT rate on eligible leisure activities from 20% to 5%. This reduction applies to admission tickets for both adults and children across a broad range of venues, including amusement parks, museums, zoos, soft play centres, and adventure parks. The lower tax rate will also cover children’s meals served in restaurants and children’s tickets for cinemas and theatres.
In addition to the tax reduction at the gates, operators could benefit from increased accessibility. Children aged between five and 15 in England will receive free travel on local bus services throughout August, a measure designed to make day trips more affordable. The government has stated the package is intended to support households navigating the cost of living while generating increased footfall for businesses relying on peak summer trade.
Industry leaders welcome the intervention
The announcement has drawn immediate reaction from industry figures. Paul Kelly, Chief Executive Officer of the British Association of Leisure Parks, Piers and Attractions (BALPPA), noted the timing of the government’s action.
“This is a very welcome and timely boost for the UK’s visitor attraction sector,” Kelly said. “It will help make great days out more affordable for families, while giving our members added confidence as they head into the peak summer season. The businesses we represent are at the heart of communities across the country, supporting jobs and local economies, and this measure recognises their importance. Our members stand ready to pass on this benefit and deliver brilliant, memorable experiences for visitors of all ages. We look forward to seeing more people enjoying the very best of what the UK has to offer.”
Fiona Eastwood, Chief Executive Officer of Merlin Entertainments, confirmed the operator’s response to the policy change.
“This is great news for the UK’s visitor economy and for families planning trips this summer,” Eastwood said. “As the season gets underway, this timely move from the Government will make it easier for people to get out, explore and create memorable moments together at destinations across the country. Merlin will be applying this VAT cut to both admission tickets and children’s meals, adding more value to days out and short breaks at our 20 UK attractions.”
Kate Nicholls, Chair of UKHospitality, added: “It’s good to see the Government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence. A 5% rate of VAT for children’s meals and tickets is a good step to help families enjoy a great British break this summer.”
Funding and technical implementation
The policy represents an estimated £300m commitment. Chancellor Rachel Reeves stated this will be funded by reforming the foreign branches exemption, preventing multinationals from offsetting overseas losses to reduce UK tax.
Reeves said: “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.”
Prime Minister Keir Starmer also highlighted the intent behind the changes. “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,” he explained.
Operators should note specific parameters surrounding the scheme. The relief applies across England, Wales, Scotland, and Northern Ireland, beginning in late June to coincide with the start of the Scottish school holidays. However, tickets that permit repeat entries outside the designated window, such as annual passes, will not qualify for the 5% rate unless they are priced identically to a standard single-entry ticket. Furthermore, venues operating under the cultural exemption, where no VAT is currently charged on admission, fall outside the scope of the new reduction. HMRC has published guidance for businesses detailing how to implement the changes ahead of the scheme’s launch.
