VAT cut on children’s meals announced for summer holidays
The government has announced a temporary VAT cut on children’s meals in restaurants and cafes this summer.
It comes in a move aimed at supporting families and driving footfall into hospitality during the school holidays.
Chancellor Rachel Reeves confirmed the measure in the House of Commons today as part of the government’s new Great British Summer Savings scheme.
Under the plans, VAT on children’s meals in restaurants and cafes will be reduced from 20% to 5% from Thursday, June 25, 2026, to Tuesday, September 1, 2026.
The measure will apply across the UK, beginning at the start of the Scottish school summer holidays and running until the end of the school holidays in England, Wales and Northern Ireland.
It forms part of a wider temporary VAT cut on summer attractions, including fairs, theme parks, zoos and museums, as well as children’s tickets for cinemas, concerts, soft play and theatre.
Hospitality focus
For hospitality, the children’s meals measure is likely to be the most significant part of the announcement.
Restaurants, cafes and food-led pubs have faced repeated pressure from rising wage costs, food inflation, business rates, utilities and a squeeze on consumer spending.
The sector has also repeatedly called for a lower rate of VAT, arguing that a reduction would help businesses protect margins, stimulate demand and keep prices more manageable for customers.
One of the major frustrations for hospitality after the 2025 autumn Budget was the government’s decision not to reduce VAT, with trade bodies having pushed for a sector-specific rate or temporary cut.
While today’s announcement does not represent the broader hospitality VAT reduction many operators have called for, it does mark a targeted intervention for restaurants and cafes during a key trading period.
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Rachel Reeves announces summer VAT cut
Announcing the scheme, Rachel said she recognised that families wanted “not just getting-by, but being able to enjoy time together without worrying about the next bill.”
She said: “That is why I am launching the Great British Summer Savings scheme to help families and support our hospitality sector.
“So I can today announce a temporary cut in the rate of VAT on summer attractions from 20% to 5% over the summer holidays.
“This will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums.
“It will include children’s tickets for cinemas, concerts, soft play and the theatre.
“And it will cut the cost of children’s meals in restaurants and cafes from 20% VAT to 5% as well.”
Small business reaction
Michelle Ovens CBE, CEO and founder of Small Business Britain, welcomed the announcement, saying the cut could help both families and operators over the summer.
Michelle said: “It’s encouraging to see the Chancellor’s commitment to a summer of savings with the VAT cut on children’s meals.
“Providing an important boost for small businesses during the summer period, helping to drive footfall and ease pressure on margins at a crucial time of year.
“As many businesses prepare to enter the most important trading quarter of the year, measures that support both families and local high streets are incredibly welcome.”
She added: “The support is essential in combating the ongoing cost of living crisis, particularly during the summer holidays when financial pressures and childcare commitments can intensify without the support schools often provide.”
What it could mean for restaurants and cafes
The summer holidays are a major opportunity for family-friendly hospitality businesses, but they also come at a time when many households are watching discretionary spending closely.
For restaurants and cafes, a lower VAT rate on children’s meals could help encourage family visits, particularly in coastal towns, city centres, tourist destinations and local high streets.
Operators will now need to assess how the reduction is applied in practice, including whether savings are passed directly to customers, used to protect margins, or built into summer family offers.
The temporary nature of the cut means it will not resolve the sector’s wider cost pressures, but for businesses reliant on family dining, it could provide a welcome short-term boost during one of the busiest trading periods of the year.
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