Rachel Reeves has announced a cut in the rate of VAT on tickets for theme parks, zoos and museums from 20% to 5% over the summer holidays.

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

Sir Keir Starmer said the support would give families concerned about the months ahead “a bit of breathing room” to “enjoy moments that matter without the same level of financial strain”.

Ms Reeves told the Commons in a statement 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% 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.

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.

As expected, Ms Reeves did not announce immediate help with energy bills driven up by Donald Trump’s war in the Middle East.

The household energy price cap is predicted to rise by £209 a year from July after the closure of the Strait of Hormuz pushed up global oil and gas prices.

Ms Reeves told MPs: “Because of the decision that I made at the budget last year to cut £150 from energy bills, we have lessened the impact of rising prices and current external forecasts suggest that the cap from July will be at a similar level to the cap in April last year.

“We stand ready to act if market conditions worsen significantly later this year and I have been leading cross-Government contingency work on design of potential future targeted and temporary support for businesses.”

The Chancellor said she would pay for cost-of-living support by changing how oil and gas companies with overseas operations are taxed.

This would put an end to the practice of some oil and gas groups structuring their tax affairs “in a way which ensures they pay little or no corporation tax on their UK energy trading profits” and “raise hundreds of millions of pounds a year”, Ms Reeves said.

Final costings for all the measures will be detailed at the next budget following scoring from the Office for Budget Responsibility, according to the Treasury.

Sir Keir, who was seeking to regain control of the political agenda with the announcements after his premiership came under pressure, said it was “not right” that “for too many families those things – a trip to the seaside, a visit to the zoo, a bus ride into town for a day out, even a simple treat at the end of the week – are starting to feel out of reach”.

The Government was providing “a serious response” to the “concerns people have about the months ahead” due to global instability, the Prime Minister wrote on Substack.

“This summer, we are making it easier and more affordable for families to get out, spend time together, and make memories they will cherish for life.”

Theme parks and cinemas welcomed the 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”.

The Trump administration is awarding grants to a group of quantum computing companies, including IBM, in exchange for equity stakes in some of them, deepening Washington’s push to support sectors viewed as critical to domestic supply chains and technological competitiveness, Reuters reported.The move expands the administration’s strategy of taking ownership positions in companies considered strategically important, particularly in areas where the US is seeking to counter China’s influence, including advanced technology and semiconductor-related sectors.The US government has previously taken significant stakes in companies such as Intel and rare-earth miner MP Materials.Under the latest initiative, IBM will receive $1 billion, while GlobalFoundries is set to receive $375 million, according to statements issued by the companies on Thursday.Other firms, including D-Wave Quantum, Rigetti Computing and Infleqtion, are expected to receive around $100 million each in exchange for a US government stake in the companies.Shares of companies involved in the programme rose between 7 per cent and 25 per cent in premarket trading.According to an earlier report by the Wall Street Journal, the administration is awarding a total of $2 billion in grants to nine quantum-computing companies.Quantum computers are designed to process information exponentially faster than traditional supercomputers, although the technology still faces major technical challenges, including high error rates that limit practical applications.GlobalFoundries said it launched a business called Quantum Technology Solutions aimed at scaling manufacturing capabilities for quantum computing hardware, while the US government agreed to take an equity stake of around 1 per cent in the company.IBM also announced plans to launch a company called Anderon in New Albany, New York, which it described as America’s first dedicated quantum chip manufacturing facility.Backed by $1 billion in incentives under the CHIPS Act from the Commerce Department and an additional $1 billion cash contribution from IBM, Anderon will operate as a 300-millimetre quantum wafer foundry.IBM said it would contribute intellectual property, assets and workforce capabilities to Anderon and bring in additional investors as the company expands.“These strategic quantum technology investments will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum capabilities,” Commerce Secretary Howard Lutnick said.

Britain’s biggest budget airline, easyJet, says it intends to operate its full summer schedule – despite concerns about possible aviation fuel shortages caused by the Iran conflict.

The carrier’s chief executive, Kenton Jarvis, told the BBC Today programme: “We’ve seen absolutely no issues with fuel supply at any of our airports in the UK, across Europe, or indeed beyond. We stay in very close contact with our fuel suppliers, airports, governments, and they are equally raising no issues looking forward.

“What is true is obviously there’s a lot less oil coming from the Gulf region, but fuel suppliers have successfully diversified with production increased in Norway, in West Africa, in the Americas. Refining capacity for jet fuel has also increased substantially outside of the Gulf region.”

In March, the airline reduced the number of available seats by 0.3 per cent due to the high fuel price. But Mr Jarvis said: “At easyJet, we fully intend to fly the summer schedule that we have on sale.”

His comments echo those of Steve Heapy, CEO of rival Jet2, who said on Wednesday: “The current picture is one of increased production and imports, meaning we continue to look ahead with confidence. We have already been very clear about our plans to operate our schedule as normal this summer, and our message to holidaymakers is that summer is on.”

EasyJet reported sharply increased losses for the first half of its financial year, covering October 2025 to March 2026. The company lost £552m, up 40 per cent compared with a year earlier. It represents an average loss of £13 for each of the 42 million passengers flown.

The airline’s CEO told Today presenter Nick Robinson: “Airlines typically make losses in the six months to March as they run through the winter and then look to make the profits as we operate in the summer.

“We actually saw our airline capacity increase by four per cent, and six per cent more passengers came with us because the planes were fuller.

“So demand was there, but the pricing was not increased versus last year.”

The carrier has raised its minimum fare and is conducting an “active review of all discretionary cost”.

Looking ahead, the easyJet CEO said: “Demand seems to be very strong in what we call the late market.

“As we ran through April, demand was very strong for the month of April. We’re seeing it again in May. But as you look further out, people are more cautious. People are waiting and watching, but they are booking as as you approach, and I expect that strong late booking market to run through the summer.”


He later told analysts that fares for the summer are “slightly above where they were last year over peak season”.

EasyJet has 72 per cent of its fuel requirement hedged for the summer months, falling to 53 per cent for the winter season. It has suspended its normal hedging strategy “due to elevated near-term fuel prices”.

Mr Jarvis also described delays caused by the EU entry-exit system as “completely unacceptable”.

Since 10 April 2026, all Schengen area frontiers are supposed to be running the digital borders scheme and checking the biometrics of “third-country nationals” – of whom British travellers comprise the major share.

Already airlines including easyJet have left passengers behind due to the length of passport queues on departure from the EU to the UK.

“This is completely unacceptable,” Mr Jarvis said. “I’d encourage all the European countries is to use the flexibility that’s been given to them by the European Commission, that they can phase the introduction of this if they see queues in peak times.

“They can go back to normal border force control with stamping of passports, so they should use this.”

Greece has said biometric checks will not be imposed on British arrivals and departures until further notice.

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