The UK Government has announced that VAT on a wide range of family attractions and children’s meals in restaurants will be cut from 20% to 5% for the duration of the school summer holidays — a measure that applies across Wales as well as the rest of the UK.
The temporary reduction runs from 25 June to 1 September 2026 and covers admission tickets for theme parks, soft play centres, zoos, circuses, adventure parks, nature reserves, wildlife parks and amusement parks — as well as children’s and family tickets for cinemas, theatres, concerts and exhibitions.
Children’s meals served from a dedicated children’s menu in restaurants and cafés, for consumption on the premises, will also qualify for the reduced rate.
The scheme, which Chancellor Rachel Reeves announced to the House of Commons on Thursday, is expected to cost around £300 million and will be funded through reforms to the foreign branches exemption — a tax rule that previously allowed multinational companies to offset overseas losses against their UK tax bill.
In south-west Wales, commercial attractions including Plantasia in Swansea, the LC Swansea waterpark, Vue and ODEON cinemas in Swansea, Carmarthen and Llanelli, Margam Activity Centre’s paid activities and venues including the Grand Theatre Swansea, Gwyn Hall in Neath, Pontardawe Arts Centre and the Princess Royal Theatre in Port Talbot are among those expected to benefit — provided businesses pass the VAT saving on to customers, which the government expects but cannot compel.
There is an important caveat: attractions that do not currently charge VAT on entry — including not-for-profit museums, theatres operating under the cultural exemption, and free-entry venues — are outside the scope of the policy and will not see admission price reductions as a result of the announcement.
Secretary of State for Wales Jo Stevens said Welsh families would benefit from cheaper tickets for attractions and meals out, alongside the extension of the 5p cut to fuel duty announced on Wednesday.
Alongside the VAT cut, the UK Government announced free bus travel for children aged five to 15 throughout August — but that scheme is limited to England only, as bus services are a devolved matter.
Wales is not without its own equivalent support, however. Swansea Council will also benefit from the council’s own free bus travel scheme, which has already seen more than a million free journeys taken across previous schemes. The council has set aside £450,000 this year to fund free travel across the Easter, summer and Christmas holidays — with the summer dates yet to be confirmed but the commitment already budgeted.
Welsh families also continue to benefit from the Welsh Government’s £1 single fare scheme for young people aged five to 21 on participating bus services across Wales, which pre-dates the UK Government’s summer announcement.
The VAT cut does not apply to season tickets or passes that permit entry beyond the 25 June to 1 September window, unless they are priced the same as a standard single-entry ticket.
Helen Miller, director of the Institute for Fiscal Studies, said the measures would produce some savings but estimated they would amount to an average of around £10 per UK household across the summer period.
The hospitality industry broadly welcomed the announcement, with UK Hospitality chair Kate Nicholls calling it a positive step — while suggesting it should be viewed as a starting point for a wider shift to a permanently lower VAT rate for the hospitality sector to bring the UK in line with European competitors.
The VAT cut announcement came as part of a broader package of cost of living measures, including targeted cuts to import tariffs on more than 100 food products including biscuits, chocolate, dried fruit and nuts — though the government has acknowledged there is no guarantee supermarkets will pass those savings on to shoppers.
Businesses that fall within the scope of the policy can find guidance on how to operate the scheme on the HMRC website, with the full list of eligible products and activities set out in the government’s published fact sheet.
