HMRC tax rate changes confirmed from Tuesday, September 1

VAT rates on several categories are set to be increased again on Tuesday, September 1, as a scheme which handed savings to families comes to an end.

The Great British Summer Savings scheme was announced by former Chancellor Rachel Reeves under now-ex Prime Minister Sir Keir Starmer. But the pair never had the chance to enjoy the fruits of their policy, as the two were pushed out of office by new PM Andy Burnham just days before the scheme began at the end of June.

Aimed at encouraging families to get out and enjoy attractions such as theme parks, zoos, museums and holiday parks, the scheme handed a tax cut of between 5% and 20% on various categories of family entertainments.

A VAT cut from 20% to 5% on kids’ meals in restaurants and tickets to attractions like theatres and soft play has been in place since 25 June, allowing families to enjoy their summer holiday activities for less, giving people breathing space during the cost-of-living squeeze, the government said.

But these temporary tax reductions, which were passed on to customers as savings by several big name businesses like Nando’s, Haven, Odeon, Alton Towers and Legoland, will end at midnight on Tuesday, September 1.

It means that the prices of children’s tickets to the attractions and kids meals at various restaurants will go back up to their original pre-discount pricing as the VAT will no longer be reduced or removed.

The Great British Summer Savings website says: “The government is cutting VAT from 20% to 5% on family days out — from cinema and theatre tickets to attractions, and children’s meals out. Less to pay, more summer to enjoy.

“25 June – 1 September 2026, right across the UK.”

Fiona Eastwood, CEO of Merlin Entertainments, said: “The Great British Summer Savings scheme has helped more families enjoy memorable days out together this summer, while providing a welcome boost for destinations across the country.

“We were pleased to pass these savings on to our guests at Merlin’s UK attractions, making visits more accessible and helping even more families create lasting memories during the school holidays.”

Suzie Welch, Managing Director UKI, Odeon Cinemas Group said: “ODEON is delighted to be part of the Great British Summer Savings scheme, helping to offer even greater value to our guests. It was fantastic to launch the scheme at ODEON Milton Keynes on 25 June, alongside Sir Keir Starmer and children from local schools.

“Since introducing the reduced rates across 100 ODEON cinemas, more than 1.2 million guests have benefited from the offer and enjoyed a trip to the cinema. Alongside a fantastic summer film slate – including Toy Story 5, Minions & Monsters, Moana and many more – the scheme has helped make the big-screen experience even more accessible for families across the UK.”

The government says around 251,000 families have benefited from the savings across Haven sites UK wide, and 39,000 families across Wales. Businesses from across the UK have been passing on the savings, including Barleylands Farm Park in Essex, Playdale Farm Park in Scarborough and Alexandra Palace which has offered savings on activities including boating lake pedalos and family dining. Adventure Attractions, the operator of Bournemouth Pier, has gone further by removing the historic Pier Toll and offering families discounts on attractions.

Chancellor John Healey said: “I want every family to get out and enjoy the bank holiday weekend by taking advantage of the final days of Great British Summer Savings.

“This government is determined to give people a bit of breathing space. So families can afford the days out that make the summer holidays special. Whilst giving our world-class attractions and businesses a welcome boost in trade.”