In case you hadn’t already heard, the chancellor announced on 21 May 2026 that the government will be introducing a temporary reduced rate of VAT (5%) for supplies of children’s meals and tickets to certain attractions, in a bid to ease the burden of cost for parents trying to keep their children entertained throughout the summer holidays.

The temporary reduction in VAT will apply to selected services and activities taking place during 25 June 2026 and 1 September 2026. Some examples of the types of supplies that will be included within the scope of the reduced rate are as follows:

• Children’s meals
  
• Children’s cinema, theatre, show and concert tickets
  
• Admission to certain attractions

Although the above seems vague, as always there are more detailed conditions/criteria to be met for each category, when you read the fine print. The overriding theme of each category seems to lie with how the supply is presented in that it needs to be “held out for sale for a child, based on how it is marketed, priced and presented by the supplier.” In addition, there is great emphasis on the time of the supply.

Of course, there is no legal obligation for businesses to lower their prices in line with the reduction in VAT, and there may be some challenges where businesses offer a ‘family package/bundle.'

If your business is likely to be affected by the reduced rate of VAT, please do get in touch and speak to our VAT Senior: jade.peters@rickardluckin.co.uk