Destination Plymouth have compiled a look at the updates from a Government announcement that will impact the visitor economy this summer.
HM Treasury has confirmed a temporary reduced VAT rate of 5% (down from 20%) on children’s meals and a wide range of family leisure activities. This will apply across the UK from 25 June to 1 September 2026 and is intended to boost visitor numbers and support businesses during the peak season.
What is included
The reduced VAT rate applies to:
• Children’s meals consumed on-site from a dedicated children’s menu
• Family and children’s tickets for cinemas, theatres, exhibitions, shows, and concerts
• Admission to attractions including theme parks, museums, zoos, aquariums, heritage sites, adventure parks, and indoor play facilities
What is not included
• Sports facilities and sports admissions
• Takeaway children’s meals
• tickets purchased outside the scheme window
• Season tickets extending beyond the relief period (unless aligned with single-entry pricing)
Expected impact
Businesses are expected to pass on the VAT reduction to customers at the point of sale. If fully applied, families could see meaningful savings across a range of attractions and activities, helping to drive footfall during the summer holidays.
In addition, free bus travel for children aged 5–15 will be available across England throughout August, further supporting access to attractions and reducing travel costs for families.
What this means for your business
• The reduced rate applies automatically to eligible sales from 25 June
• Businesses can choose whether to apply the reduction or refund VAT on advance bookings made prior to implementation
• HMRC guidance is available to help determine how this applies in specific cases
• The scheme is temporary and will end on 1 September 2026
This measure has been welcomed by the Tourism Alliance as a positive step in supporting the visitor economy, with ongoing advocacy for a longer-term reduced VAT rate for the sector.
Further details and official guidance can be found via GOV.UK and HMRC.
This measure has been welcomed by Destination Plymouth and the Tourism Alliance as a positive step in supporting the visitor economy, with ongoing advocacy for a longer-term reduced VAT rate for the sector.
