Stories

Thu, 21 May 2026

Thu, 21 May 2026 Chris Mason: VAT cut on summer fun - the announcement that didn't leak

Chancellor Rachel Reeves unveils measures aimed at helping families with the cost of living - but is it enough?

* The government has announced a package of policies, branded as "Great British Summer Savings", to help with cost of living pressures.
* Key measures include: + A cut in VAT on summer attractions from 20% to 5% + No reduction in fuel duty + Contingency planning for jet fuel supplies over the summer + Free bus travel for children in England in August
* There is no big intervention to help with energy bills, as the government believes they will be lower during the summer and a targeted package will be needed for winter.
* The government is worried about repeating the expensive universal packages of help offered by the Conservatives in previous years, such as Liz Truss's energy bill cap.
* Any future help will be targeted and aimed at those who need it most, but the government does not yet know who or how much support they will receive.
* Ministers are struggling to balance the need for intervention with the impact on public finances.
* The article also raises a wider question about the role of government and its scope to intervene, suggesting that we may have become accustomed to large-scale state interventions in recent years.