Thursday May 21st 2026
Written by Midlothian View Editor, Phil Bowen
In a Ministerial Statement the Chancellor, Rachel Reeves, has announced the introduction of a temporary reduced rate of VAT (5%) for supplies of children’s meals and tickets to certain attractions, intended to reduce the cost of selected activities and services for families with children during the summer holiday period. The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).
The reduced rate for children’s meals and children’s tickets for cinemas, theatres, exhibitions and shows covers those supplies that are marketed, priced and presented as intended for children. These do not generally apply to supplies aimed at adult customers, except where those supplies form part of a qualifying family package as described in this brief. The reduced rate will apply to tickets for all customers for attractions set out within this brief.
This cut in VAT rate from the standard rate of 20% will be introduced by statutory instrument and have effect on admissions from 25 June 2026 to 1 September 2026.
What supplies are covered
The reduced rate applies to the following categories of supplies where the conditions described are met:
– children’s meals
– children’s cinema, theatre, show and concert tickets
– admission to certain attractions
Responding to Chancellor Rachel Reeves announcment, FSB Scotland Chair Guy Hinks said:
“Making it more affordable for families to go and do something fun with the kids over the summer is good news for families, businesses in those sectors and other small firms who’ll benefit from increased footfall in the area.
“Let’s hope it makes it a bumper summer for thousands of independent businesses who have had to spend years fighting rising costs and squeezed margins.
“Most people know about the importance of the ‘golden quarter’ in the run up to Christmas for sustaining small businesses through the quieter months, but the summer is just as vital to many. For some, a strong summer could make the difference between surviving another year and being forced to pull down the shutters.
“With household budgets tight, we know many families will be ‘staycationing’ this year, taking shorter breaks, closer to home. This is a great opportunity for them to make the most of that and support some of our brilliant independent businesses at the same time.”
FSB research shows 44% of small hospitality firms are based on or near high streets, so the VAT cut is likely to drive extra footfall to town and city centres.
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