UK Chancellor Announces Summer Cost of Living Measures

Chancellor Rachel Reeves announced a set of measures intended to reduce costs for families over the summer period. The package includes a cut in VAT to 5 per cent on summer attractions such as theme parks and soft play centres, along with free bus rides for under-16s in England during August.

Reeves also confirmed the postponement of planned fuel duty increases scheduled for September and December. She stated that the measures would support families with small treats while boosting businesses across the UK, and noted prior actions including the removal of £117 from average energy bills and freezes on prescriptions, fuel duty, and rail fares.

Clare Moriarty, chief executive of Citizens Advice, said the measures would make a real difference for families this summer. She added that people are already struggling and fear conditions will worsen as winter approaches, and that the announcement does not address record energy debt or financial uncertainties.

TUC general secretary Paul Nowak said any practical steps to help families are positive but that the government must be bolder. He noted that the economic effects of the US-Iran war have barely begun and that threats to living standards will grow if the conflict continues.

The announcement did not include measures on housing costs or rent controls. The New Economics Foundation had previously called for an emergency brake limiting rent increases to the lower of inflation or 2 per cent, but housing minister Matthew Pennycook stated earlier this month that the government is not pursuing rent controls.

Reeves met with supermarkets to urge them to keep prices low and announced the suspension of imported tariffs on over 100 foods including chocolate and biscuits. She said she expects supermarkets to pass the savings on in full. On energy costs, the chancellor pointed to existing reductions averaging £117 but did not announce new steps ahead of the expected July price cap increase.

Forecasters anticipate the cap could rise by around £200, largely offsetting prior savings. The government is expected to provide further details on an energy debt relief scheme that aims to clear £500 million in arrears for the poorest households.