The new Great British Summer Savings start from June 25 with money off everything from pubs and restaurants to zoos and bus tickets

A temporary VAT cut to reduce prices at family attractions such as zoos and theme parks as well as the cost of children’s cinema tickets and restaurant meals has come into effect. Chancellor Rachel Reeves announced the “Great British Summer Savings” measure – which begins on Thursday – as part of a package aimed at easing the impact on the cost of living from the Iran war.

Peppa Pig World, Alton Towers and Legoland are among the well-known attractions taking part. Merlin Entertainments, which owns 20 venues including Alton Towers and Legoland, has updated ticket prices to show “summer VAT savings applied”. Advance tickets for both parks now start at £29.75, down from £34.

Wiltshire safari park Longleat has also updated its ticketing system, with the discount bringing the cost of advance tickets for a family of four down to £122.30, a saving of £17.50. The Odeon, Vue and Cineworld cinema chains are also taking part, with Odeon saying a family ticket for two adults and two children will come down from £32 to £28.50 during the scheme.

Haven Holidays is also participating, and said families will benefit whether they have already booked their holiday or book in the coming weeks. Greene King, with more than 2,500 outlets, McDonald’s, Wetherspoons and Nando’s are among the dining locations passing on the tax saving on children’s meals.

Nando’s said its “Nandino” meals will come down from £6.95 to £6.08 while on the Wetherspoons children’s menu a £5.75 meal drops to £5.03, and McDonald’s is cutting the price of a typical Happy Meal by 27% to £2.99. Season tickets, such as the popular Merlin passes that start at £139, are not included in the scheme.

The rules say that a weekly or season pass allowing multiple visits beyond the summer holidays do not qualify if they cost more than a standard single-entry ticket. There is no legal requirement for businesses to take part in the scheme, which runs across England, Wales, Scotland and Northern Ireland until September 1.

The Treasury estimated the scheme would cost around £300 million and also includes free bus travel for children aged between five and 15 in England during the school holidays in August. Prime Minister Keir Starmer said: “The cost of living isn’t just about paying the bills, it’s about being able to afford the moments that matter with your family.

“Whether it’s a trip to the cinema, a day out together or family meal, too many parents have had to hold back because of pressure on household budgets – that’s why we’re slashing VAT on family days out this summer.” Rachel Reeves said: “I know the cost of living is a number one concern for families, and it can be even harder over the summer holidays when kids want to do things and money is tight.

“So we’re making it that bit easier for families to make memories together and enjoy the little treats – while giving a boost to businesses across the UK.”

Theme parks and cinemas welcomed the slashing of VAT, with British Association of Leisure Parks, Piers and Attractions chief executive Paul Kelly saying it was “a very welcome and timely boost for the UK’s visitor attraction sector”. Our members stand ready to pass on this benefit and deliver brilliant, memorable experiences for visitors of all ages.”

UK Hospitality chairwoman Kate Nicholls said a lower rate of VAT for hospitality was “the quickest and simplest way to lower prices and boost consumer confidence”.

Chancellor Rachel Reeves announced major changes to the regime

A 22% levy is set to be introduced on interest earned from cash held in stocks and shares Isas to prevent savers getting around new cash Isa limit rules from 2027. In last year’s budget, the chancellor, Rachel Reeves, announced major changes to the regime, including the end of the Lifetime Isa, aimed at people saving for a first home or retirement, and a lower cap on cash Isa savings for everyone aged under 65.

The limit for stocks and shares and innovative finance Isas (non-cash Isas) will remain at £20,000, alongside moves to encourage an investment culture.

The cash Isa allowance for people aged 65 and over will remain at £20,000. A factsheet placed on the HM Revenue and Customs (HMRC) website said rules will be introduced to ensure the policy achieves its objective.

Rules will be introduced to prevent people subscribing up to £20,000 cash in a non-cash Isa and leaving it there long-term, earning tax-free interest.

The rules also aim to stop people subscribing £20,000 to a non-cash Isa and then transferring those funds to a cash Isa, or subscribing £20,000 to a non-cash Isa and use the funds to purchase “wholly cash-like” investments.

Among the changes, there will be a flat rate charge (22%) on interest or alternative finance return paid on cash held within a non-cash Isa, HMRC said.

Simon Harrington, head of public affairs at PIMFA (Personal Investment Management and Financial Advice Association), said: “We remain sceptical that these changes will have any real effect on consumer investment behaviour and fear they will do the opposite.

“Far from encouraging take up, they risk making the stocks and shares Isa, the very wrapper the Government wants people to use, less attractive.”

HMRC said a technical consultation with industry on the draft legislation will start shortly and regulations will be laid in the autumn, with the new rules coming into force from April 6 2027.

Tom Riley, Nationwide Building Society’s group director of retail products said: “Ensuring a level playing field between cash and non-cash Isas is vital to maintaining a strong savings market.

“We welcome the Government’s introduction of controls to support its ambition to get more people investing, while ensuring over-65s can rely on the full cash Isa allowance.”

Andrew Gall, head of savings at the Building Societies Association (BSA) said: “We welcome the Government providing greater clarity on its proposed Isa reforms.

“It is vital that savers have clear information and sufficient time to understand how the changes will affect them and the choices available to them from April 2027.

“Building societies also need certainty on the final rules so they can update systems and communicate with their members well ahead of implementation.”

Jasvinder Gakhal, chief executive, money at Skipton Building Society said: “This consultation is a step in the right direction,” adding “but the detail now matters”.

Jeremy Cox, head of strategy at Coventry Building Society, said: “We’re moving away from a fair and straightforward Isa system, where all adults can save or invest up to £20,000 tax-free each year, towards a more complex and confusing set of rules that will feel unfair to many consumers.”

Andrew Prosser, head of Investments at InvestEngine, said: “Our worry is that instead of encouraging investing, this could end up putting people off.

“If stocks and shares Isas become more complex and less straightforward, some savers may just disengage altogether – which would go against the whole point of trying to build a stronger investing culture in the first place.

“What we really need is to improve financial education and make it more accessible – that would do far more to encourage people to invest than simply restricting how they use their savings and would be a more effective way of building a healthier investment culture in the UK.”