Keir Starmer has set out how the government is delivering real progress now while rebuilding Britain’s foundations for the future. But does anyone believe him?
PM says “our plan is working” as government delivers results on costs, migration control and growth
Net migration down sharply to its lowest since 2021, inflation down faster than expected to 2.8%, and UK the fastest-growing economy in the G7 in the first quarter of the year
“Great British Summer Savings” to help families afford more time together this summer
The Prime Minister has set out how the government is delivering real progress now while rebuilding Britain’s foundations for the future.
Recent figures show the plan is working:
Net migration has fallen by almost three quarters to its lowest level since 2021.
Inflation has dropped faster than expected to 2.8%.
The UK is the fastest growing economy in the G7, with growth beating expectations at 0.6% in the first quarter.
Together, this progress is strengthening the UK’s resilience in an uncertain world – easing immediate pressures on families while putting the economy on a more stable footing for the long term.
That progress is being felt more widely across the country, as the government rebuilds the public services working people rely on:
Homicide is at its lowest levels since the 1970s, knife crime is down by 10%, and we have taken more than 63,000 knives off our streets.
NHS waiting lists are at their lowest level for three and a half years, with the largest single month performance improvement in 17 years.
There are 4,000 additional teachers across secondary schools, special schools and further education.
With families still feeling the squeeze – and global instability continuing to drive uncertainty – the government is going further to help households with the cost of living, so people can enjoy the everyday moments that make life better.
Prime Minister Keir Starmer said: “We now have the fastest growing economy in the G7, net migration has fallen, and NHS waiting lists are at their lowest level in three and a half years.
“Our plan is working. And as summer begins, we are going further to bring down the cost of living and make life easier for families, so they have more room to enjoy it.
“This government will keep pushing forward to deliver the change the country voted for.”
Building on that progress, the Prime Minister and Chancellor have acted to ease pressure on families, announcing further cost of living support including VAT cuts on hospitality, free bus travel for children aged 5 to 15 in England throughout August, and targeted tariff reductions to bring down the price of everyday essentials. Together, these measures will help families go further while supporting high streets and local businesses.
That action is being underpinned by growing economic strength. GDP has increased every quarter since 2024, forecasts have been exceeded in the first quarter of this year, and the IMF has upgraded the UK’s growth outlook – all clear signs that economic stability is returning and resilience is being rebuilt.
The government is also driving that resilience by backing businesses to invest and expand, including a landmark trade deal with the Gulf Cooperation Council – the first such deal by a G7 country – and new legislation to give small firms stronger protection from late payments and the certainty they need to grow.
This comes alongside action to make work pay and back working people – with the National Living Wage increased, 30 hours of funded childcare delivering savings of up to £8,000 per child each year, and stronger rights for 11 million renters through the Renters’ Rights Act.
At the same time, the government is restoring control and strengthening security – closing more than half of asylum hotels and taking further action to tackle the criminality that undermines communities.
Alongside this, the government is rewiring the state to support delivery, with a delivery team in every department, led by a senior civil servant, and performance incentives strengthened so that senior leaders are rewarded for driving results.
This week, the government confirmed senior civil servants’ pay rises will be directly linked to performance to reward the doers, not the talkers. As a package, this is the biggest change to senior civil pay in decades.
This is a government taking a different path – not returning to a status quo that failed working people, but building a stronger, fairer Britain.
From lowering costs and backing families to restoring control and driving growth, the government is delivering the security and stability people expect – and laying the foundations for long-term change.
SECURITY? Peter Mandelson scandal
STABILITY? Internal civil war forcing unneccesary by-election
Families across the UK will pay less for children’s meals in restaurants, kid’s tickets to cinemas and theatres, and entry to a wide range of attractions thanks to government action.
Throughout summer, VAT will be temporarily cut to help reduce the cost of days out and support businesses by increasing footfall as government launches Great British Summer Savings scheme.
Move is latest in government drive to support families and help ease pressures on household budgets.
Families will enjoy discounted attractions and meals out this summer, with the launch of the government’s Great British Summer Savings scheme to help people enjoy days out for less.
From 25 June to 1 September 2026, VAT will be slashed on eligible activities, helping families enjoy the weekend treats, the days out, the small plans that make life enjoyable during the cost of living squeeze while supporting the businesses that depend on summer footfall.
Great British Summer Savings will be a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks helping families enjoy a day out for less.
In a further boost for households, children aged five to 15 in England will be able to travel free on local bus services throughout August – making it easier and more affordable for people to get out and about.
The scheme is estimated to cost about £300m. The Chancellor has been clear we are taking a targeted and responsible approach, consistent with our strategy to reduce borrowing and debt and meet the non-negotiable fiscal rules.
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.”
Rachel Reeves also announced this week that the government is reforming the foreign branches exemption—a rule that allows companies to offset overseas losses—so multinationals can’t use it to reduce the tax they pay in the UK.
The Treasury expect these reforms to raise hundreds of millions a year and fund the package of measures set out today. Final costings for all measures will be published at the next Budget following certification from the Office for Budget Responsibility.
The support for families was announced by the Chancellor as she updated the House of Commons today on the government’s economic response to the Middle East. She reiterated that the government has the right economic plan, with inflation falling faster than expected and the UK being the fastest-growing economy in the G7 at the start of the year – with the IMF upgrading its growth forecast for the UK.
The VAT rate on eligible activities will be cut from 20% to 5% and applies across England, Wales, Scotland and Northern Ireland.
The reduced rate will apply to:
Children’s menu meals served in restaurants for consumption on the premises
Children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions
Admission tickets, for both children and adults, to a range of attractions, including: amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.
This money saving package supports families, while also supporting businesses through increased footfall. The government expects businesses to pass on VAT savings to customers.
Guidance for businesses in scope of the policy has been published by HMRC which outlines how businesses can operate the scheme.
The Chancellor has also announced a new £350 million Critical Chemicals Resilience Fund that will support strategically important producers and sites, strengthen critical supply chains and help support thousands of skilled jobs, alongside a ceramics package worth £120 million, which will back energy efficiency and decarbonisation in a sector vital to UK manufacturing and local communities.
The government will continue to work in partnership with these sectors on the wider challenges they face, including regulatory costs and the potential for action by the Trade Remedies Authority on unfair overseas competition.
She also confirmed a 10p per mile increase in tax‑free mileage rates for the 2026-27 tax year, backdated to April 2026. On average, this will save around £120 for a worker doing 6,000 business miles, using their own vehicle for work.
This builds on the Chancellor’s announcement yesterday that she is extending the fuel duty cut until the end of the year – saving motorists £120 since 2025.
This comes on top of action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage.
Fiona Eastwood, Chief Executive Officer of Merlin Entertainments said: ““This is great news for the UK’s visitor economy and for families planning trips this summer. As the season gets underway, this timely move from the Government will make it easier for people to get out, explore and create memorable moments together at destinations across the country.
“Merlin will be applying this VAT cut to both admission tickets and children’s meals, adding more value to days out and short breaks at our 20 UK attractions. We’re excited to welcome more families to our resort theme parks and immersive experiences for a summer packed with fun, play and lasting memories.”
Paul Kelly, Chief Executive Officer of the British Association of Leisure Parks, Piers and Attractions said:“This is a very welcome and timely boost for the UK’s visitor attraction sector.
“It will help make great days out more affordable for families, while giving our members added confidence as they head into the peak summer season. The businesses we represent are at the heart of communities across the country, supporting jobs and local economies, and this measure recognises their importance.
“Our members stand ready to pass on this benefit and deliver brilliant, memorable experiences for visitors of all ages. We look forward to seeing more people enjoying the very best of what the UK has to offer.”
Kate Nicholls, Chair of UKHospitality, said: “”It’s good to see the Government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence.
“A 5% rate of VAT for children’s meals and tickets is a good step to help families enjoy a great British break this summer.
“I look forward to working with the Government to ensure it is simple to apply and targeted effectively to reduce costs for families.”
Mark Way, President AMC Europe & Managing Director, Odeon Cinema Groups said: “ODEON welcomes today’s announcement focused on making cinema even better value and support any measures that seek to help cinema-goers, the industry and consumers more broadly.
As the UK’s largest cinema operator, we believe these measures will continue to help drive strong demand and we’re excited that our guests will be able to enjoy the big screen for less over this blockbuster summer.”
Tim Richards CBE, Founder and CEO, Vue (largest cinema operator in UK by market share), says: “As we anticipate an incredible summer of family films, we welcome this step from the government to help more families enjoy the Big Screen Experience over the holidays.
Chancellor Rachel Reeves statement to Parliament (21/05)
Chancellor Rachel Reeves yesterday (21 May) updated the House of Commons on the Government’s economic response to the war in Iran, and the action they are taking to support families and businesses with the Cost of Living:
With permission, Madam Deputy Speaker, I will make a statement on the Government’s economic response to the war in Iran, and the action that we are taking to support families and businesses with rising costs.
Madam Deputy Speaker, this Government has the right economic plan.
I said I would grow the economy:
And last week the Office for National Statistics confirmed that Britain’s economy was the fastest growing in the G7 for the first quarter of this year.
We beat the Office for Budget Responsibility’s forecast in the Spring, with economic growth at 0.6% in the three months to March.
And because of the resilience of our economy, this week the International Monetary Fund upgraded Britain’s forecast for this year.
I said I would cut borrowing:
Borrowing last year was £20 billion lower than the previous year, and the latest forecasts show it falling in every year of this Parliament.
The IMF has backed our economic plan, saying that the government’s fiscal framework strikes – and I quote – a “good balance between deficit reduction and growth-friendly spending.”
I said I would cut the cost of living:
Since the election interest rates have been cut six times.
Real wages have continued to rise in every single month since I became Chancellor,
And yesterday, the ONS confirmed that inflation fell in April faster than expected, making the UK the only G7 economy where inflation fell last month.
Madam Deputy Speaker, we have the right economic plan.
But the conflict in the Middle East poses a significant challenge to the world economy – including our own.
I have not shied away from my criticism of the war.
I believe it to have been a mistake.
Nor have I ignored the costs that it will bring to bear on the British people.
I have been clear-eyed about my duty: to do what I can to support families and businesses.
To be responsive to a changing world.
And responsible in the national interest.
Next week, Ofgem will confirm the level of the energy price cap that will apply from July. I know that any increase will be felt by families .
Because of the decision that made at the Budget last year to cut £150 off energy bills, we have lessened the impact of rising prices, and current external forecasts suggest that the cap from July will be at a similar level to the cap in April last year.
We stand ready to act if market conditions worsen significantly later this year, and I have been leading cross-government contingency work on design of potential future targeted and temporary support.
For businesses, any support will also need to be carefully targeted at firms most exposed to the crisis.
But while many firms have been insulated from recent prices rises through fixed price contracts, there are sectors that face particular structural issues related to energy costs.
That is why we have already increased support for our most energy intensive companies through the British Industry Competitiveness Scheme and we’ve brought that forward.
And it is why we must also build resilience in our critical infrastructure and industrial strategy sectors where supply chains are critical for growth and security.
Following representations from my right honourable friends – the members for Redcar, Mid Cheshire, and Bathgate Linlithgow – and building on the good work of the Minister for Industry – I am today establishing a £350 million Critical Chemicals Resilience Fund to support strategically important producers.
And having listened to my right honourable friends including the members for Stoke-on-Trent Central, North and South, and my honourable friend the member of Amber Valley and workers represented by the GMB union – I am today announcing a new £120 million fund to help our historic ceramics sector helping them to increase efficiency and drive-down energy costs, because we will always stand up for British industry and British jobs.
The Government has also this week set out additional, targeted support for those businesses most exposed to rising fuel costs.
For hauliers, the Government is granting a 12-month road tax holiday for HGVs, saving the typical heavy lorry up to £912.
To support farmers and the rail freight industry, I have decided to cut duty on red diesel by over a third until the end of this year.
And having heard from my honourable friends the members for Oldham West, Chadderton and Royton and the trade union Unison, I can today announce a 10p per mile increase in tax free mileage rates, backdated to April 2026; benefiting those who need to drive for work, from care workers to plumbers.
Madam deputy speaker, when a country faces challenges because of higher oil and gas prices, we must ensure that those who benefit from increased prices and volatility pay their fair share.
In my first Budget, I extended and increased the Energy Profits Levy.
Last year, I announced a new, permanent windfall tax regime on oil and gas price shocks.
Last month, I increased the Electricity Generator Levy, alongside further action to weaken the link between high gas prices and electricity prices.
Today, I am bringing forward specific changes to the taxation of foreign branch profits; changing how companies are taxed in relation to their overseas activities.
Currently, some oil and gas groups that operate overseas through foreign branches have structured their tax affairs in a way which ensures they pay little or no Corporation Tax on their UK energy trading profits.
Today we are putting an end to that practice.
We expect these reforms to raise hundreds of millions of pounds a year and fund the package of measures set out today, with costings certified by the OBR forecast in the usual way.
Madam Deputy Speaker, I know the pressure family finances are under.
That is why I have already taken action to provide help
I increased the National Living Wage and National Minimum Wage to its highest rate ever.
Freezing prescription charges and rail fares.
And taking £150 off energy bills which contributed towards the fall in inflation last month.
But I want to go further.
And today I am taking further action to ease the burden on family finances.
First, fuel duty – I have already extended the 5p cut twice since the election and I can confirm today there will be no rise this year, recognising the pressure that the war has put on fuel prices.
Second, I know that the cost of the weekly shop is often one of the biggest worries for families.
So last month I met with supermarkets to urge them to do all they can to keep prices low.
And today I am taking action by suspending tariffs on over 100 different foods sold in supermarkets.
And I am clear that I expect supermarkets to pass these savings on in full to consumers.
Third, I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense.
So, I am bringing forward tough new powers so that the Competition and Markets Authority and other regulators can take action when firms break the rules.
Fourth, for many families driving is not always an option.
Busses are the most popular form of public transport in Britain, with over four billion journeys made last year.
I have already extended the £3 bus fare cap to March 2027 and today I can confirm that bus travel across England will be free for children aged between 5 and 15 throughout August.
Finally, Madam Deputy Speaker, I recognise that what matters for families is not just getting-by, but being able to enjoy time together without worrying about the next bill.
That is why I am launching the Great British Summer Savings scheme to help families and support our hospitality sector.
So I can today announce a temporary cut in the rate of VAT on summer attractions from 20% to 5% over the summer holidays.
This will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums.
It will include children’s tickets for cinemas, concerts, soft play and the theatre.
And it will cut the cost of children’s meals in restaurants and cafes from 20% VAT to 5% as well.
These changes will apply across the UK from the start of the Scottish school summer holidays on 25th June and run until the end of the school holidays in England, Wales and Northern Ireland on 1st September.
Madam Deputy Speaker, this Government has the right economic plan.
We promised to grow the economy – and we have.
We promised to cut inflation – and we have.
And we promised to cut the cost of living – and we are.
Cost of living boost with free bus travel for children and targeted food tariff cuts
Free bus travel for children throughout August, helping families across England get out and explore
Comes as products including biscuits, chocolate, dried fruit and nuts set to see targeted cuts to agri-food tariffs, to help to reduce pressure on food prices.
Move is latest in government drive to support families and help ease pressures on household budgets.
Families travelling this summer will benefit from free bus travel for children as the Chancellor ramps up efforts to help with the cost of living (we already have this in Scotland – Ed.)
The Chancellor is committing more than £100 million to fund the free fares scheme and also continuing to support bus services. Every child aged five to 15 in England will travel free on participating local buses throughout August – with unlimited journeys, no registration required, and at no cost to families.
It is part of a scheme called ‘Great British Summer Savings’. The Chancellor will set out more details today on how the Government will support families and businesses this summer.
Prime Minister Keir Starmer said: “We know many hard‑working families are still feeling the squeeze and too often think they have to hold back.
“By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we’re putting money back into people’s pockets and making life that bit easier.
“This government is focused on practical steps that help right now — easing pressure on household budgets, supporting parents during the school holidays, and backing British businesses.”
It comes as the government prioritises protecting households and businesses from rising costs, and the announcements today will build on the work to cut energy bills, protect motorists and crack down on unfair profiteering.
This month the government has delivered £117 off energy bills on average, increased the minimum wage again and frozen rail fares and prescription charges, thanks to the choices the Chancellor made at the Autumn Budget.
As the war in Iran puts pressure on prices at home, the government has stepped in with a tax cut for hauliers to keep our shelves stocked and economy moving, extended the 5p fuel duty freeze to protect motorists at the pump, and emergency relief for families in rural communities who have been hit by a sharp increase in the price of heating oil.
The Chancellor will say that in an era of global conflict, this government has the right economic plan, as economic indicators showed the UK beating the forecasts again this week. The UK was the fastest-growing economy in the G7 at the start of this year, and Monday the IMF upgraded our growth forecast for 2026. Yesterday we saw inflation falling faster than expected, thanks to the action taken at the budget to keep energy prices down.
Chancellor of the Exchequer Rachel Reeves said: “My number one priority is protecting households from rising costs. This summer I want every family to be able to enjoy themselves, that’s why we’re launching the Great British Summer Savings Scheme, and why we’re helping kids with free bus travel throughout August.
“As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”
Transport Secretary Heidi Alexander said: “Free bus travel for every child in August means parents can plan days out, visit loved ones and make the most of the holidays without the added financial pressure.
“We’ve already seen what’s possible – in the West of England, the Mayor’s free travel scheme is making a real difference, particularly for young people in the most deprived communities. That’s exactly the kind of impact we want to deliver for families right across England this summer.
“This builds on the work we’re already doing to make buses better for everyone – from the £3 bus fare cap and the landmark Bus Services Act, to our £3 billion investment in local services and frozen rail fares for the first time in 30 years. We’re making sure public transport works for people, not against them.”
Free bus travel for children will run from 1 to 31 August and covers participating local bus services across England. This could save a family with two children who make a weekly return trip at a £1.50 child fare £27 in August.
It comes following a successful pilot ran last summer by the Mayor for the West of England, Helen Godwin.
Helen Godwin, Mayor of the West of England, said: “Kids Go Free in the West of England has seen around 1.4 million free journeys over the summer, Christmas, and Easter holidays since my election last year.
“It’s brilliant that, after we have invested devolved funding to make a difference that people across the West can see and feel, the government is rolling out Kids Go Free nationally this August!
“There’s been a huge increase in public transport use through our offer already, including children and families travelling on our new green buses. Bus travel from our lowest income areas doubled year-on-year last summer, with kids able to just hop on board and no registration needed.
“I’m so excited to see Kids Go Free return again for the school summer holidays – helping more children and young people to explore the best of what the West has to offer.”
This funding also includes support for bus services that have experienced increased costs, recognising the vital service they provide particularly for school children, pensioners and those living in rural communities. The Government will work with the sector to decide how this support can be allocated with the greatest impact.
Separately, as part of wider efforts to reduce pressure on prices, the Government is launching a business engagement exercise, with a view to making further targeted cuts to agri-food tariffs, suspending tariffs on over 100 types of products including biscuits, chocolate and dried fruit and nuts.
The expected benefit to consumers is more than £150 million a year. The full list of products will be published next week, with business engagement commencing next week. As per previous commitments, the list takes account of domestic production and food security and does not include any significant UK primary agriculture production. This is on top of the expected consumer benefits from agri-food tariff suspensions, announced at the end of April, of around £100 million to £400 million each year.
Today’s announcements build on action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage. Yesterday (May 20) the Government announced extending the 5p fuel duty cut until end of year.
Michelle Ovens, CBE, CEO & Founder of Small Business Britain, said: “It’s fantastic to see the Chancellor’s commitment to additional funds for the free fares scheme.
“Giving children across the country the opportunity to travel freely during the summer holidays is vital in broadening aspirations, building life experiences, and encouraging young people to envision a future without boundaries.”
Ben Plowden, Chief Executive of Campaign for Better Transport, said: “This is a welcome move to help more families to get out and about by bus this summer and highlights the importance of affordable public transport in easing cost-of-living pressures on hard-pressed households.
“Investing in affordable, reliable bus services is one of the most cost-effective ways of improving people’s quality of life and tackling rising energy costs year-round.”
Lydia Horbury, CEO of passenger champions Bus Users UK said: “Making bus travel free for children throughout August is a hugely welcome step that will help families, encourage greater use of public transport and give young people more independence and opportunity over the summer holidays.
“For many households, even small savings can make a real difference, and this initiative removes both cost and complexity by making travel simpler and more accessible. It is also a wonderful opportunity for more families to experience the convenience and value of local bus services first hand.
“We hope this not only supports communities over the summer but also inspires lasting confidence in public transport and encourages the next generation to see buses as an easy and sustainable way to travel.”
Jason Prince, Director of the Urban Transport Group, said: “Buses are the most used form of public transport, essential in connecting people to opportunities.
“Building on the successful fares offers of many of our member transport authorities, Kids Go Free is a welcome and timely intervention – helping to make public transport more affordable over the summer holidays, and supporting families and young people to get to where they want to go.”
THERE ARE SOME WORDS OF CAUTION, HOWEVER …
Helen Barnard, Director of Policy and Research at Trussell said:“We are deeply concerned about the rising cost of living and the risk this will drive even more people into hunger and hardship, piling pressure on food banks that are already under immense strain.
“This package of summer support will do little to reassure people already struggling to pay their bills and put food on the table that the government has grasped the potentially dire impact of coming price rises, or is prepared to protect people at most risk of being forced to the doors of food banks.
“We expect energy bills to start rising this summer, continuing into the winter, with food and other costs also expected to rise over the year into winter and especially in early 2027. The government must urgently prepare a package of targeted measures to protect people on the lowest incomes from being forced into severe hardship as these cost pressures take hold.
“Last year, food banks in the Trussell community provided more than 2.6 million emergency food parcels across the UK. This isn’t right. The UK government must put appropriate plans in place to protect people on the lowest incomes from bearing the brunt of further spikes in prices and ensure that everyone can afford the essentials.
“The government made a UK manifesto promise to end the need for emergency food. We will not see this become a reality without further bold action to build on the progress it has started.”
Director of Policy and Influencing at Independent Age Morgan Vine said:“The cost of living support measures announced today to reduce the price of some food and travel are positive, but do not address the biggest issue weighing on older people living in financial hardship right now, energy bills.
“It’s inevitable that energy prices are going to soar as we move through summer and into the colder months.
“People in later life on low incomes tell us they are increasingly anxious and are already cutting back on essentials. Many simply cannot afford any further increases in their bills. We urge the UK Government to announce as soon as possible additional targeted energy support for low-income households.
“People of all ages on low incomes urgently need this reassurance so that they have a chance at keeping their homes warm during the colder months.”
