Reeves announces VAT cut on summer attractions in new cost of living package - as it happened

Rolling coverage of the latest economic and financial news Rachel Reeves will cut VAT to 5% on summer attractions such as theme parks and soft play centres during the school holidays as she aims to ease the impact of the war in Iran on cash-strapped households. The chancellor told MPs on Thursday she would also raise more tax from global oil firms operating in the UK to help meet the costs of her plans. Cutting VAT from 20% to 5% during the summer on tickets for attractions and children’s meals is part of a scheme that Reeves is calling “Great British summer savings”. It will also include free bus rides for under-16s in England during August. Companies in the UK’s dominant services sector have reported one of the sharpest declines in business activity in a decade, according to a closely watched index. Businesses are grappling with a “perfect storm” of domestic political uncertainty around Keir Starmer’s leadership as prime minister and the growing impact of the Iran war, leading to soaring costs, supply shortages and job cuts, the report said. The S&P Global purchasing managers’ index (PMI), which surveys hundreds of companies across the UK each month, said activity among firms wor