The Chancellor has announced a string of cost of living measures to help struggling families across the summer.
Announcing her “Great British Summer Savings scheme”, Rachel Reeves said it was important that households do not just “get by” but are “able to enjoy time together without worrying about the next bill”.
The measures include cuts to ticket prices for summer attractions, theatres, concerts and cinemas as well as scrapping plans to increase fuel duty.
Here are the plans announced by the Chancellor.
VAT cut on summer attractions
The rate of VAT on summer attractions will be temporarily cut from 20% to 5% from June 25 to September 1, Ms Reeves said.
It will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums.
Children’s tickets for cinemas, concerts, soft play and the theatre will also be included.
It means the cost of going to some of the capital’s most popular attractions, including the Tower of London and Buckingham Palace, will be cheaper.
VAT on children’s meals in restaurants and cafes will also be cut from 20% VAT to 5%.
The changes will apply across the UK from the start of the Scottish school holidays on June 25 and run until the end of school holidays in England, Wales and Northern Ireland on September 1.
Fuel Duty Cut
The Government has announced it is postponing a 5p rise in fuel duty "for the rest of the year".
Fuel duty on red diesel used in farming and rail freight will also be cut by over a third and hauliers will receive a "holiday" from vehicle excise duty for a year.
Free bus travel for children
Ms Reeves said her measures will cover free bus travel for children aged 15 and under during August in England.
Young Londoners can already get free bus rides with a 11-15 Zip Oyster photocard or 16+ Zip Oyster Photocard but those living outside the capital do not benefit from the scheme.
It comes after the Mayor of London announced the bus and tram Hopper fare is being extended over the summer to include unlimited journeys.
The promotion will mean travellers can take as many trips as they want on weekends and pay for just one between July 25 and August 31.
The Prime Minister said the VAT cut on summer activities and the bus travel programme for children would mean “the cost of a day out drops overnight”.
“It means more freedom for parents and more independence for young people. Opportunities to explore towns, parks, seaside resorts and countryside that might otherwise have felt out of reach.”
How will the measures be paid for?
The Chancellor said she would pay for the cost-of-living support by changing how oil and gas companies with overseas operations were taxed.
“Today I am bringing forward specific changes to the taxation of foreign branch profits, changing how companies are taxed in relation to their overseas activities,” Ms Reeves said.
“Currently, some oil and gas groups that operate overseas through foreign branches have structured their tax affairs in a way which ensures they pay little or no corporation tax on their UK energy trading profits.
“Today we are putting an end to that practice.
“We expect these reforms to raise hundreds of millions of pounds a year and fund the package of measures, with costings certified by the OBR (Office for Budget Responsibility) forecast in the usual way.”
