Summer attractions VAT cut could spark 'bumper' season for Scotland's high streets

The Federation of Small Businesses (FSB) Scotland said Rachel Reeves’ plans “could make the difference between surviving another year and being forced to pull down the shutters.”

The Chancellor announced VAT would be cut from 20 per cent to five per cent this summer.

She set out the measure as part of a package aimed at easing the impact on the cost of living from the Iran war.

Ms Reeves told the House Commons on Thursday: “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 per cent as well.”

She said the changes will apply across England, Wales, Scotland and Northern Ireland from June 25 until September 1.

The Government expects businesses to pass on VAT savings to customers.

Her “Great British Summer Savings” scheme, which the Treasury estimated would cost around £300 million, also includes free bus travel for children aged between five and 15 in England during the school holidays in August.

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Scotland will receive roughly £11 million extra in funding due to the free bus travel in England.

Other measures announced by Ms Reeves include a 10p per mile increase in tax-free mileage rates backdated to April, a £350 million critical chemicals resilience fund and a £120 million fund to help the ceramics sector, and the cutting of import tariffs on more than 100 types of food products.

Scottish Secretary Douglas Alexander said: “This Government understands the cost of living pressures being felt by hard working families throughout the country which is why we are taking action from freezing fuel duty, to reducing pressure on food prices and making it cheaper for families to enjoy a day out this summer.

"With the measures announced today on slashing VAT on family days out we are putting money back into people's pockets to help ease pressures on families' household budgets."

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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.”