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Purveyor of fun might not exactly be Rachel Reeves's image as chancellor. But, with her latest package of cost-of-living measures, she wants to “help families afford life’s little treats... from a meal out to a visit to a theme park or cinema” this summer.
So, during school holidays UK-wide, she’s cutting to just 5% the rate of VAT on tickets to adventure parks, circuses, zoos, theatres, exhibitions, concerts, even soft-play areas. It’ll apply too to children’s meals in restaurants. And, in England in August, children under 15 will get free local bus travel.
More significant for day-to-day costs, there’s an increase to the “mileage allowance”. If you use your own car for work, the amount you can be reimbursed tax-free by your employer is rising from 45p a mile to 55p a mile. Reeves said that would help care workers and others who drive regularly.
It all comes on top of a suspension of import taxes on some foods like chocolate, biscuits and nuts, and yesterday’s announcement that the 5p cut to fuel duty on petrol and diesel will be extended to the end of the year.
Alongside recent figures that have shown inflation down in April and growth a little higher than expectations, the government finally has some good news to spread.
Its problem, as the Conservatives were quick to point out, is that most of these measures are temporary and small-scale. Many businesses still say the chancellor’s tax rises are crushing them. There’s no end in sight to the war in Iran. Inflation is expected to rise. And many families may be crying out for help with energy bills in the autumn.
Oh, and the government still has a leadership crisis to resolve too.
The essential: Reeves wants to help you have some fun with your family this summer, and she’s trying to tackle the cost of living. But the huge pressures caused by the war in Iran are not going away, and the government’s deep-seated problems remain.
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