Great British Summer Savings
June 1, 2026
On 21 May 2026, the Chancellor, Rachel Reeves MP, announced a package of measures under the banner of ‘Great British Summer Savings’, designed to cut costs for families — particularly those with children. Two of the measures have direct relevance for businesses and the self-employed, and we’ve set out the key details below.
Tax-Free Mileage Rates
From the start of the 2026/27 tax year, tax-free mileage rates for cars and vans will increase by 10p per mile, backdated to 6 April 2026. This affects both employees using their own vehicles for business travel and the self-employed, who can claim mileage as a business expense.
The updated HMRC rates are as follows:
For the self-employed
| Vehicle | 2026/27 rate | Before 6 April 2026 |
| Cars and goods vehicles – first 10,000 miles | 55p | 45p |
| Cars and goods vehicles – after 10,000 miles | 25p | 25p |
| Motorbikes | 24p | 24p |
For employees
| Vehicle | 2026/27 rate | Before 6 April 2026 |
| Cars and vans – first 10,000 miles | 55p | 45p |
| Cars and vans – after 10,000 miles | 25p | 25p |
| Motorbikes | 24p | 24p |
| Bicycles | 20p | 20p |
It’s worth noting that only the rate for cars and vans for the first 10,000 miles has increased. All other rates — including motorbikes, bicycles, and mileage above 10,000 miles — remain unchanged.
Temporary Reduced Rate of VAT
For a limited period — from 25 June to 1 September 2026 — a 5% reduced rate of VAT will apply to a range of family-focused activities. This is a temporary measure for the summer period and covers the following:
Children’s meals
To qualify for the reduced rate, the meal must meet all of the following conditions:
- Held out for sale specifically as a meal for children
- Supplied as catering by a restaurant, café or similar establishment, consumed on the premises
- Not takeaway food
- Drinks can be included
Children’s admissions and entertainment
The reduced rate also applies to:
- Children’s cinema, theatre, show and concert admission tickets
- Admission to qualifying attractions suitable for children, including amusement parks, museums, heritage sites, zoos and soft play areas
Importantly, for qualifying attractions, the reduced rate applies to ‘all’ admissions regardless of the customer’s age — so if the venue qualifies, adult tickets are also subject to the 5% rate during the temporary period.
These articles are for guidance only and professional advice should be obtained before acting on any information contained in them. No responsibility can be accepted for loss occasioned howsoever to any person as a result of action taken or refrained from as a result of reading.
