LONDON, May 21 -- The government of the United Kingdom issued the following news:

* This will help families afford life's little treatsandhelp them tomake memories- from a meal out to avisitto a theme park or the cinema- at a time when rising costs are putting pressure on household budgets. * Free bus travel for children aged 5-15 in EnglandinAugust will further support families to getout and aboutthis summer. * The Government will work with eligible businessesto get thescheme up and running. * Thisinitiative supports theaction the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage.

We are cutting the cost of summer activities for families

* From 25 June to 1 September2026, the reduced 5% rate of VAT will apply toeligible servicesincluding:

* Children's meals served in restaurantsfor consumption on the premises- defined as meals served from a children's menu and marketed,presentedand priced as children's meals. * Children's and family tickets for cinema, theatre, exhibitions,showsand concerts * Admissiontickets - for both children and adults - toattractions such asamusement parks, fairs,circuses,museums, zoos, adventure parks, softplayandobservation attractions

* The reduced rate applies in England, Wales,Scotlandand Northern Ireland. * The period begins with the start of theScottish school summer holidays and extends across the full UK school summer holiday period. * If the business chooses to pass through the full benefit, the total VAT savings for a family of two adults and two children could be:

* £20 off the family's tickets to a theme park * £2 off entry to soft play * £6 off the family's tickets to a farm attraction * £17off the family's tickets to a wildlife park * £1.50off the children's tickets to the cinema * £9 off the family's tickets to the circus * £2 off the children's meals on a lunch out * £11 off the family's tickets to the aquarium

We are supporting families to getout and aboutthis summer

* Throughout August, all childrenaged5 to15inEnglandwill be able to travel free on any local bus service. * This will help more families access summer activities while reducing pressure on household budgets. * London already operates its own 5-15-year-old Zip Card scheme, which provides children with free travel across London.

We are providing targeted support without undermining public finances

* The VAT relief is temporary - running over the summer months only - and targeted at UK families. * This is designed to support familiesby making family days out more affordable,while also supporting businesses through increased footfall. * This builds on action the Governmenthasalready taken to cut energy bills, protect motorists from fuel duty increases, and crack down on unfair price gouging. * Final costings will be confirmed at the next fiscal event followingcertificationfromtheOffice forBudgetResponsibility.

How will businesses pass this onto families?

* The government expectsqualifyingbusinessestopassthese savingson to families by lowering the prices people pay on eligible children's meals and tickets, so the VAT cut is reflected directly at the till. * Passing on the full saving can help businesses attract more customers over the summer, increasing footfall and supporting local economies. * We recognise businesses are facing cost pressures, which is why we are also supporting them through measures including a £4.3bn package to limit business rates bill rises and action to cut energy costs for intensive industries.

How the reduced rate works in practice

Eligible activities

* Children'smealsfor consumption on the premisesare eligible where served from a dedicated children's menu and marketed,presentedand priced as such. * For cinemas, theatres,exhibitions,concertsand shows, the reduced rate applies to children's and family tickets only. * The reduced rate applies to admissiontickets, including adults, for:

* amusement parks and fairs, including water parks and theme parks (excluding pay-per-ride attractions) * circuses * adventure parks, including outdoor adventure centres * museums and similar cultural facilities, including planetariums, heritage sites, naturereservesand botanical gardens. * zoos, aquariums, wildlifeparksand farm visitor attractions. * soft play centres, indoor bounceparksand indoor play facilities * observation attractions, including viewing platforms,towersand observation wheels

* Sports facilities are not included. Certain sportssuppliesarealreadyexemptfrom VAT, such aswhen they are provided byeligiblenon-profit bodies (e.g.swimming at acommunityswimming pool).

Season tickets and advance purchases

* If a ticketpermitsrepeat entries outside the dates 25 June to 1 September, such as a season ticket, it will not qualify for the relief unless it is priced the same as a standard single-entry ticket. Repeat entry tickets solely for use within the relief period will qualify for the relief. * Businesses will be able to apply the 5% rate of VAT on eligible sales for admission between 25 June and 1 September. For sales that have been made before the legislation is in place, including before the announcement, businesses may opt to apply the reduced rate or refund the VAT saving.

Sector-specific queries

* Individual businesses should consult HMRC guidance todeterminehow the rules apply in their specific circumstances. * Further guidance for businesses from HMRC is availablehere.

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