Lincolnshire’s tourism and hospitality sector could be set for a welcome summer boost following the Government’s announcement of the new “Great British Summer Savings” scheme, which will temporarily reduce VAT from 20% to 5% on a range of family attractions and activities across the UK. The measure is designed to help families manage the cost of summer holidays while encouraging greater visitor spending in local economies.

The temporary VAT reduction will run from 25 June 2026 until 1 September 2026, covering the peak summer holiday period. Eligible attractions include theme parks, zoos, museums, fairs and wildlife attractions, while reduced VAT will also apply to children’s cinema tickets, theatre performances, concerts, soft play facilities and children’s meals served in restaurants and cafés. The Government has stated that the initiative aims both to support families and stimulate visitor spending within the hospitality and leisure sectors.

For Lincolnshire, where tourism contributes significantly to the local economy, the announcement presents a valuable opportunity. Popular coastal destinations such as Skegness, Mablethorpe and Cleethorpes, alongside the county’s many heritage attractions, nature reserves, visitor centres and family entertainment venues, may benefit from increased demand as households seek more affordable days out. Combined with the Government’s separate commitment to free local bus travel for children aged 5 to 15 throughout August in England, the package could encourage more families to explore destinations across the county during the school holidays.

Business owners should, however, be mindful that the scheme begins part way through a VAT period for many organisations. Rebecca Gulley, Nicholsons VAT specialist commented ”The 25 June start date means careful administration will be required to ensure eligible transactions are correctly identified and charged at the reduced rate from the commencement date.” Businesses will need to review booking systems, point-of-sale software, ticketing platforms and pricing structures to ensure compliance. Becky continued “Particular attention may be needed where tickets or admissions are sold in advance, where deposits have been taken, or where mixed supplies involve both qualifying and non-qualifying elements”. Accurate record keeping will be essential to demonstrate the correct VAT treatment and minimise the risk of errors in future VAT returns.

The Treasury has indicated that it expects businesses to pass on the VAT savings to customers, helping to reduce the cost of family outings and meals. Government examples suggest that families could save meaningful amounts across multiple attractions during the summer holidays, potentially increasing visitor numbers and overall spending within local destinations.

However, while the scheme may encourage additional visitor spending, many tourism, hospitality and leisure SMEs are unlikely to see any meaningful improvement in profitability. Businesses across the sector continue to grapple with significant increases in employment costs following rises in the National Minimum Wage and employer National Insurance contributions, alongside higher utility bills, insurance premiums, food costs and other operating expenses. For many operators, the reduction in VAT is intended to benefit consumers rather than businesses themselves, meaning margins remain under pressure. Whilst increased footfall would be welcomed, many SME owners will argue that temporary measures to boost custom do little to address the underlying cost challenges that continue to threaten the viability of attractions, entertainment venues, restaurants, cafés and hospitality businesses throughout Lincolnshire and across the UK.

Nevertheless, the announcement creates a clear marketing opportunity. Attractions and hospitality operators that move quickly to communicate lower prices and enhanced value to consumers could gain an advantage during the crucial summer trading period. Businesses may wish to review promotional campaigns, website messaging and social media activity to ensure visitors understand the savings available throughout the scheme’s duration.

Richard Hallsworth said “While the measure is temporary, it arrives at an important time for many tourism and hospitality businesses facing a challenging trading environment”. For Lincolnshire’s visitor economy, a successful implementation could provide a welcome injection of trade during the busiest months of the year, helping attract more visitors, support local employment and strengthen the county’s reputation as an affordable and family-friendly destination. Whether the additional visitor numbers are sufficient to offset rising employment and operating costs remains to be seen, but businesses will undoubtedly be hoping that a busy summer season provides some much-needed relief.