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.

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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.

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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.

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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.

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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.

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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. 

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Oh, and the government still has a leadership crisis to resolve too.

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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.

The former health secretary has made his first major policy proposal as part of his Labour leadership pitch. And the Conservatives and the Green Party have announced their candidates for the Makerfield by-election. 

Dominic Casciani

Home and legal correspondent

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I’ve reported repeatedly since the pandemic on the extraordinary delays in courts - particularly for victims of crimes. Today I’m highlighting the Employment Tribunal where delays in England and Wales mean people bringing unfair dismissal claims are waiting up to five years for their case to be heard.

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One of those affected is Catriona Ball, whose husband Lewis died aged 43 in 2024, weeks after he quit a job he believed had been making him ill. After his death, she lodged a claim at the Employment Tribunal for constructive unfair dismissal - but the full case won’t be decided by a judge until 2029. That means the mother of two can’t settle Lewis’ estate and she must now sell their family home to pay the legal bills while she waits for her day in court. His former employer is contesting the claim.

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Catriona’s loss is exceptional - but the legal limbo she is experiencing is not. The latest figures show that there is now a backlog of almost 72,000 claims before the Employment Tribunal - up almost 26,000 in a year.

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The reasons for the delays are complicated and include a rise in self-represented people turning to AI for help because they can’t afford to pay for a lawyer.

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A spokesperson said the Ministry of Justice recognised the pressures on Employment Tribunals and that it was “taking action to bring down the backlog, drive efficiencies and ensure swifter justice”.