Businesses across Greater Lincolnshire are being encouraged to familiarise themselves with upcoming temporary VAT changes that could help boost visitor numbers and encourage more family spending during the school summer holidays.
The Government’s new Great British Summer Savings initiative will introduce a temporary reduced rate of VAT from 20% to 5% on selected family leisure activities between 25 June and 1 September 2026.
The scheme aims to make family days out more affordable at a time when many households continue to carefully manage their spending. By lowering costs, the Government hopes to encourage more families to eat out, visit attractions and enjoy experiences together during the summer break.
The reduced VAT rate will apply to:
- Children’s meals in restaurants, cafés and similar venues
- Children’s tickets for cinemas and theatres
- Admission tickets for family attractions, including soft play centres, adventure centres and theme parks
For eligible businesses, the temporary change could present an opportunity to attract new visitors, encourage repeat visits and increase customer spending over the summer months.
Why this matters for local businesses
When people perceive an activity as more affordable, they are often more likely to make a booking, plan a day out or visit somewhere they may have previously considered too expensive. Small reductions in cost can have a surprisingly large impact on decision-making, particularly for families balancing multiple holiday expenses.
For businesses across Greater Lincolnshire’s visitor economy, hospitality and leisure sectors, this could provide an opportunity to showcase their offer to a wider audience and encourage customers to return throughout the summer.
Now is a good time to review pricing, marketing materials, booking systems and VAT processes to ensure your business is ready ahead of the changes taking effect on 25 June.
Free HMRC webinars available
To help businesses understand the new rules and determine whether they are affected, HM Revenue and Customs (HMRC) is hosting two free webinars:
- Thursday 5 June 2026
- Monday 8 June 2026
The sessions will explain how the temporary reduced VAT rate works, which supplies qualify, and what businesses need to do to comply with the changes.
Businesses are encouraged to attend if they operate within hospitality, leisure, entertainment or visitor attractions sectors.
Further details on the scheme can be found on the Government’s guidance page:
Businesses wishing to attend a webinar can register online.
Business Lincolnshire will continue to share updates and guidance to help Greater Lincolnshire businesses make the most of opportunities arising from the scheme.