Chancellor Rachel Reeves announced a £1.8 billion package of VAT cuts on Thursday targeting entertainment and family activities, as the government seeks to provide relief during ongoing cost-of-living pressures.

The measures include reduced VAT on amusement park admissions, theatre tickets, and children's meals at restaurants. Reeves stated the cuts were designed to give families "a bit of breathing room" amid current economic challenges.

The announcement comes as households continue to face elevated costs across multiple sectors. The Chancellor framed the entertainment-focused tax cuts as a way to make family outings and cultural activities more affordable.

Notably absent from the package were any direct measures addressing energy bills, which remain a significant expense for many households. The VAT reductions represent a targeted approach to cost-of-living support, focusing on discretionary spending categories rather than essential utilities.

The £1.8 billion cost of the measures will need to be accommodated within the government's fiscal framework. Implementation details and the timeline for when the reduced VAT rates will take effect were not immediately specified in the announcement.