Millions of Brits given 15% tax cut and 17 ways you can take advantage of £300m giveaway

Millions of Brits can benefit from a whopping 15 percent tax cut this summer in a move that Keir Starmer says will cost £300 million.

As part of the Great British Summer Savings programme launched by Starmer's Government, he and Chancellor Rachel Reeves are cutting VAT to a quarter of what it has been.

So instead of paying the 20 percent tax rate, it will be five percent for the summer months. The news comes hours after Nationwide announced it was giving millions away to Brits who have accounts with it.

The new scheme applies right across the UK, including England, Scotland, Wales, and Northern Ireland and will go live from 25 June to 1 September.

And crucially, it is a benefit that will mostly impact children, with the reduced rate applying to children’s menu meals served in restaurants as well as children's - and family - tickets to the cinema, concerts, shows, exhibitions, and theatres.

But adults outside of the family set up can also benefit, with admissions tickets for both kids and adults having the five percent rate on a range of attractions, including amusement parks, museums, fairs, soft play centres, zoos, circuses, adventure parks, nature reserves, observation attractions and wildlife parks.

A bold move by the PM (Jaimi Joy / POOL / AFP via Getty Images)

Other benefits

On top of the above 17 ways you can take advantage, children aged five to 15 in England will be able to travel free on local bus services this August.

It is a move the Government says it has taken to try and keep the costs of a day out as low as possible.

The £300m scheme is being funded by the Government closing a business tax loophole that allows business to reduce the tax they pay in the UK.

The cinema just got more affordable this summer (Getty Stock Images)

'The cost of living is still squeezing budgets'

Prime Minister Keir Starmer said: "When I think about the summer holidays, I think about the Lake District, where I went as a child and later made memories with my own family.

"I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.

"This summer we’re cutting the cost of a day out together - free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kid’s attractions - so families can afford more time together.

Rachel Reeves, Chancellor of the Exchequer, said: "Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK.

"This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, freezing prescriptions, fuel duty and rail fares.

"We are able do this because we have made the right choices, resulting in the UK having the fastest growing economy in the G7, with inflation going down. I know the cost of living is still a number one concern for households. Our economic plan is the right one, supporting families and businesses and building a stronger and more secure Britain.