Rachel Reeves, the Labour Party government Chancellor, delivered her Great British Summer Savings Scheme announcement in the Commons on Thursday, revealing a £120 benefit for drivers who have filled up their cars since 2025.
Fuel Duty Cut Extended
On Wednesday, May 20, HM Treasury announced that Reeves is extending the fuel duty cut until the end of the year, saving motorists £120 since 2025. This builds on previous measures aimed at reducing the cost of living for drivers.
Tax-Free Mileage Rate Increase
Reeves also confirmed a 10p per mile increase in tax-free mileage rates for the 2026-27 tax year, backdated to April 2026. On average, this will save around £120 for a worker doing 6,000 business miles using their own vehicle for work.
VAT Cut on Summer Attractions
The Chancellor also announced a cut of VAT to 5% on summer attractions such as theme parks and soft-play centres during the school holidays. This measure aims to make days out more affordable for families.
Industry Reactions
Paul Kelly, Chief Executive Officer of the British Association of Leisure Parks, Piers and Attractions, said: "This is a very welcome and timely boost for the UK’s visitor attraction sector. It will help make great days out more affordable for families, while giving our members added confidence as they head into the peak summer season."
Kate Nicholls, Chair of UKHospitality, commented: "It’s good to see the Government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence. A 5% rate of VAT for children’s meals and tickets is a good step to help families enjoy a great British break this summer."
