FM: “I will lead a government that is always on Scotland’s side.”
Prosperity, security and fairness are the principles driving an ambitious vision for Scotland’s future, First Minister John Swinney has said.
In a statement to Parliament setting out ambitious plans that his government will drive forward, the First Minister outlined measures to expand cost of living support, accelerate sustainable economic growth, strengthen public services and to unlock Scotland’s potential by delivering a fresh start with Independence.
Mr Swinney said: “Realising the potential of every part of our country, supporting families with rising costs and securing our nations’ future are at the core of my vision for Scotland. I will lead a government that is always on Scotland’s side.
“Our cost of living support is already the best of any UK nation, but we will go further to protect and expand support for families. I want to ensure every child has the opportunity to succeed – regardless of their background – and eradicate the scourge of poverty on our society.
“Strong public services are at the heart of every successful society, and my government will do all we can to make services more effective and easier to access. That includes strengthening our NHS, reducing waiting times and improving more schools and colleges.
Prosperity, security and fairness drive our vision for Scotland's future.
• expand cost of living support • strengthen public services • drive forward economic innovation • deliver a fresh start with independence pic.twitter.com/moDmDvompc
“Strengthened public services and generous cost of living support must work in tandem with a high-performing economy, one that harnesses our countries resources, potential and talent to boost success and create opportunity.
My government will work to empower our regions to make the most of their economic advantages and streamline regulation to support investment and growth.
“A truly prosperous, secure Scotland can only reach its full potential outside the confines of the United Kingdom.
The recent, emphatic election result, with the largest ever pro-independence majority within the Scottish Parliament, has given the clear mandate for Scotland to decide its own future, which is why this parliament calls on the UK Government to transfer the power to hold a referendum on independence.
“I hope that giving Scotland the legal right to decide its own future will help build the foundations of a fairer, more prosperous nation as an independent member of the European Union.”
Nicola Sturgeon has responded after her estranged husband Peter Murrell was remanded in custody after pleading guilty to embezzlement:
She wrote on Instagram: “My reaction to the guilty plea tendered today by my former husband is difficult to put into words. I am angry, hurt, sad and very distressed about the impact of his actions on family, friends and the SNP.
“To be deceived and let down by a husband I loved and trusted has caused me acute pain. Why he acted as he did is, and always will be, beyond my comprehension.
“To be clear: I had no knowledge or suspicion whatsoever that he was using SNP funds for personal purposes. I am utterly appalled that he did so and cannot begin to understand why.
“That I was fully cleared after a thorough investigation underlines that these are not my crimes. I was misled just as others were.
“I know that there will be political discussion in light of what has happened, and I understand why. However, for me this has also been a profound personal trauma.
“I need to remain focussed on recovering from that and building a new phase of life.
“I will be making no further comment.”
However in a statement later released via her solicitor Aamer Anwar, Ms. Sturgeon added: “I have seen questions raised about how I could not have known about this. I want to reiterate that I had no knowledge or suspicion whatsoever that personal items had been purchased using SNP funds.
“I was cleared of any wrongdoing after a lengthy and thorough investigation
“In relation to many of the items in question, for example expensive watches and games consoles, I was not aware of them having been purchased at all.
“Indeed in relation to the item of largest value – a campervan – I was not aware of its existence until it featured in the police investigation in early 2023, nor was it parked in our driveway as has been claimed by some.
“In respect of any items I was aware of Peter having purchased, I had no reason to doubt that he had used his own money. We were both earning high salaries and, due to the responsibilities of my job, rarely socialised or went on holidays.
“We had separate bank accounts and I had no access to his financial records.”
TODAY (Monday, 25 May, 2026), at the High Court in Edinburgh Peter Murrell was convicted of embezzling funds from the Scottish National Party.
Assistant Chief Constable Stuart Houston had oversight of Operation Branchform, Police Scotland’s investigation into the embezzlement.
ACC Houston said: “This was a lengthy and extremely complex case due to the scale of criminality over a 12-year period and the lengths Peter Murrell went to try and cover his tracks.
“I commend the professionalism and absolute dedication of the Operation Branchform team who spent more than four years carrying out extensive enquiries across Europe to unpick Murrell’s offending.
“All of this work, in close partnership with colleagues from the Crown Office and Procurator Fiscal Service, was carried out under the most intense public scrutiny and it was their commitment to gathering such detailed and compelling evidence that brought us to the High Court today.
“This is without doubt one of the most high-profile investigations in recent times and it is testimony to the work of Police Scotland officers and staff that has led to Peter Murrell’s admission of guilt early in the court process.
“I would also like to thank the many witnesses who came forward to provide us with statements as we built the case against Peter Murrell. Their engagement with us was vital.
“Peter Murrell has shown utter contempt for the high public trust placed in him as the Chief Executive of a political party and his position in the wider political establishment in Scotland for many years.
“He abused his privileged position with access to Scottish National Party funds to divert cash into his own accounts and bankroll the lavish lifestyle he craved but could not afford.
“From 2010 to 2022 he spent hundreds of thousands of pounds on luxury goods while carefully trying to hide his criminality with false receipts and accounting.
“He must now face the consequences of his actions.”
Murrell was remanded in custody and will be sentenced next month.
Joint statement from the leaders of the United Kingdom, France, Germany, Italy, Canada, Australia, New Zealand, Norway, the Netherlands, Spain, Belgium and the EU on the situation in the West Bank:
Over the past few months, the situation in the West Bank has deteriorated significantly. Settler violence is at unprecedented levels. The policies and practices of the Israeli government, including a further entrenchment of Israeli control, are undermining stability and prospects for a two-state solution.
International law is clear: Israeli settlements in the West Bank are illegal. Construction projects in the E1 area would be no exception.
The E1 settlement development would divide the West Bank in two and mark a serious breach of international law.
Businesses should not bid for construction tenders for E1 or other settlement developments. They should be aware of legal and reputational consequences of participating in settlement construction including the risk of involving themselves in serious breaches of international law.
We call on the Government of Israel to end its expansion of settlements and administrative powers, ensure accountability for settler violence and investigate allegations against Israeli forces, respect the Hashemite custodianship over Jerusalem’s Holy Sites and the historic status quo arrangements, and lift financial restrictions on the PA and the Palestinian economy.
We strongly oppose those, including members of the Israeli government, who argue for annexation and forcible displacement of the Palestinian population.
We reaffirm our unwavering commitment to a comprehensive, just and lasting peace based on a negotiated two-state solution in accordance with relevant UN Security Council resolutions where two democratic states, Israel and Palestine, live side by side in peace and security within secure and recognised borders.
MORE WORDS, BUT ALL THE WHILE OUR UK GOVERNMENT CONTINUES TO ARM ISRAEL AND IS COMPLICIT IN THE DEATHS OF THOUSANDS OF PALESTINIAN PEOPLE.
JUDGE THEM NOT BY WHAT THEY SAY, BUT WHAT THEY DO – Ed. …
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
Measures to make the Scottish Parliament more efficient, topical and effective are to be put into place by Presiding Officer Kenneth Gibson MSP.
The changes, which the Parliament was informed of today, will be part of what the Presiding Officer calls “renewal and re-engagement”.
There will now be two First Minister’s Questions a week, with 30 minutes on a Tuesday for backbenchers and 30 minutes on a Thursday from Party Leaders.
MSPs were informed of the changes by the Presiding Officer during a meeting of the Parliament on Thursday.
The Presiding Officer also informed Members that:
Time taken for interventions will be added, to protect the time of speakers who most engage
Labour and Reform will alternate each week in leading off on questions in First Minister’s Questions, debates and statements
Chamber Business will run from 2pm to 5.30pm on Tuesdays and Wednesdays to provide more time for scrutiny in the Chamber
Chamber Business will run from 1.30pm to 5pm on Thursdays to accommodate more time for committee business in the morning
Questions to the First Minister will no longer be published in advance
There will be 18 general questions a week, 10 more than previously
Members will have to identify relevant procedure when making points of order
Events and cross-party groups will be permitted during Members’ debates to prevent delays to visitors
Informing MSPs of the changes, the Presiding Officer, Kenneth Gibson MSP, said: “Parliament needs renewal and re-engagement – with independent, innovative and open-minded leadership. That’s of critical importance and exactly what I’ll provide.
“We need to de-clutter and simplify how we work, make Parliament more efficient, topical end effective for those we represent.
“The collegiate working anticipated in the 90s, prior to Devolution, has not fully transpired. The status quo is not an option – and I’m keen to push at the boundaries of what’s possible within my remit.”
Patients, employers and GPs are set to benefit from an overhaul of the broken fit note system following the launch of several pilots by the UK Government to reform the system for workers who fall ill
Radical overhaul of broken fit note system to be piloted so it works for patients, employers, and healthcare professionals.
Trials to be delivered through selected NHS WorkWell sites and major employers.
Comes as new report shows just 29% of primary care staff see issuing fit notes as a good use of GP time.
Patients, employers and GPs are set to benefit from an overhaul of the broken fit note system following the launch of several pilots by the Government today to reform the system for workers who fall ill.
The current system sees some 11 million fit notes issued every year, with more than nine in ten declaring the person ‘not fit for work’.
Four pilots, in different areas in England, will look at the best way to end this tick-box exercise which does not offer any support or guidance and replace it with personalised ‘stay in work’ and ‘return to work’ plans for workers who fall ill.
The pilots will cover up to 100,000 appointments and last up to a year, with continuous testing, in order to narrow down the most effective approach to tackling the inherited steep increase in number of fit notes issued.
Patients will be offered either an initial fit note from a GP and then referred to community health workers – or go through the whole process without an initial fit note from a GP, and will instead be supported by a separate service staffed by clinical and non-clinical practitioners.
They will provide a range of work and health support, including three-way conversations between patients, employers, and trained professionals – covering reasonable adjustments and keeping people connected to their workplace from the first day of absence, helping more people to stay in work with support.
It is the first step in the Government’s ambition for radical fit note reform – with pilot findings due to be shaped by patients, healthcare staff, and employers – before the Government brings forward legislation to further reform the ‘broken system’.
Work and Pensions Secretary Pat McFadden, said: “Fit notes are too often a dead end – a piece of paper that tells people they can’t work but does nothing to help them get better.
“We’re changing that. By bringing employers, the NHS, and patients together we can help people recover faster, stay connected to their jobs, and get the economy firing on all cylinders.
“That’s what these pilots are about, and that’s what this Government is committed to – fixing what is broken.”
The launch comes as the Government publishes the Fit Note Call for Evidence which shows just three in 10 Healthcare Professionals in Primary Care say fit notes are a good use of GPs time, while six in 10 employers think the current process is ineffective at supporting their employees’ work and health needs.
Trials of a new approach was recommended by the former John Lewis chairman Sir Charlie Mayfield in his landmark Keep Britain Working Review into economic inactivity, which noted that the fit note system is “not working as intended” and had become a barrier to contact with employers.
Minister of State for Care Stephen Kinnock said: “Ever since I was appointed Minister of State for Care in July 2024, NHS staff have been telling me that the current fit note system isn’t working – not for patients, and not for the clinicians who sign them off.
“These pilots mark the beginning of the end for that broken system, giving people personalised support to get back into work and freeing up GPs from unnecessary admin so they can focus on what they do best: caring for their patients.
“This is what our 10 Year Health Plan is all about – earlier support, from the right people, in the right place.”
From July, the NHS will test new approaches through four existing WorkWell sites, backed by £3 million in the first year. The areas will test the following models:
Birmingham and Solihull – GPs issue the first fit note where needed, with all patients referred to a new support service led primarily by non-clinical staff, including social prescribers and work and health coaches
Coventry and Warwickshire – GPs issue the first fit note, with patients able to be referred to a support service made up of both clinical and non-clinical staff
Cornwall and the Isles of Scilly – GPs refer patients directly to a non-clinical support service, without issuing a fit note
Lancashire and South Cumbria – GPs refer patients to a support service made up of both clinical and non-clinical staff, without issuing a fit note.
BMA’s Practice Business policy lead for GPs committee England Dr Clare Bannon said: The BMA has contributed to the design of these pilots with DWP to overhaul the fit note system as we feel the current system is not working for GPs or patients.
“We welcome the opportunity to test how different models work and ensure the new process reduces unnecessary appointments for GPs, but most importantly provides support to patients.
“We will continue to input into the pilots to ensure they have appropriate occupational health support and do not inadvertently increase pressure on general practice or affect patient care. While we are supportive of this pilot, it must be underpinned by appropriate training, clinical oversight and clear governance.”
Professor Victoria Tzortziou Brown, President of the Royal College of GPs, said: “GPs take our responsibility to appropriately issue fit notes seriously, but the current system can involve significant administrative work that takes time away from patient care.
“We are open to exploring evidence-based reforms that could help improve outcomes for patients. However, any reform of the fit note process must put the health and wellbeing of patients first, be fully resourced and avoid creating additional workload for general practice.
“As such we look forward to seeing a comprehensive evaluation of this pilot.”
The Government is also confirming local funding allocations for WorkWell – the proven health-and-employment service through which the NHS-based fit note pilots will be delivered – as the programme expands nationally to support up to 250,000 people with a disability or health condition to get into or stay in work.
WorkWell is a local, health-led service connecting NHS, council and community support to keep people in work and help them return quickly if they don’t.
It comes as part of the Government’s wider £3.5 billion employment support package which meets sick and disabled people where they are, and builds on recent changes including the right for people on benefits to try work without fear of immediate reassessment, and the redeployment of 1,000 Pathways to Work advisers who are supporting those left behind by the previous Government.
Those who need time off to recover will still get it, with the Government’s Statutory Sick Pay reforms meaning employees receive support from day one of sickness absence, putting an extra £400 million a year into people’s pockets.
Alongside the NHS pilots, Keep Britain Working Vanguard businesses – including EDF Energy – will work out how employers can play a practical role in preventing absence where possible, and supporting safe, swift returns when it does occur.
Jacob Lant, Chief Executive of National Voices, said: “The current tick-box system for fit notes isn’t working for anyone, particularly patients. It makes people who are unwell jump through unnecessary admin hoops, and yet the process rarely offers people the support they need to get well and manage their conditions long-term.
The Department for Work and Pensions is absolutely right to test out new ways of supporting those who are signed off, and it is vital that patients are fully involved in that testing process, able to feed back over what works and what doesn’t. This is the only way to reliably avoid unintended consequences and create a system that actually helps both those who can’t work and those who would be able to with the appropriate support.”
“Ultimately the goal has to be about focusing on improving people’s health and getting them well, this is the hallmark of a compassionate state. In the end, investing in this approach will also pay dividends in terms of more people feeling able to work and being able to enjoy all the positives that come as a result.”
Nottingham GP Dr Sanjoy Kumar said: “I am really pleased the government is looking seriously at new approaches to fit notes, a change which is urgently needed.
“As a GP for over 25 years, I know how much of our clinical time is taken up with issuing these, which for many patients is not the right approach.”
Dr Steve Taylor GP Co-Lead Doctors Association UK said: “The Doctors Association UK has been involved in discussions over the past few months with the Department of Work and Pensions around Fit Note reform.
“These discussions were broad and included many groups: GPs, employers, patients and occupational health. We agree that the current system of fit-notes isn’t working well for patients, GPs and employers. It often lacks the nuance to deal with specific work situations and reasons that people have for not being able to work their full or part of their role.
“We hope these pilots will give the opportunity to explore a different way for people to engage with the periods of ill health and ways to make work more accessible and achievable. This recognises that GPs aren’t always best equipped to understand the options for work and we hope that active engagement between patients, GPs, employers and this new service will provide a better experience for everyone.
“It is important that no one is forced to work who cannot, but it is also important that those who can, should be encouraged and given options to work. This could be a great improvement and we look forward to seeing the outcomes from these 4 pilots.”
Chief Policy & Campaigns Officer John Foster at Confederation of British Industry said: “The fit note system is broken and fails employers, workers, and the economy. Business welcomes these pilots. They are an important step towards building a better system.
“Employers have increased their investment in supporting employee health and wellbeing and hope that these pilots will direct efforts to interventions that have the greatest impact.
“An improved system also needs to restore employers’ confidence that absence from work is only recommended when it is justified.”
Professor Neil Greenberg, the Society of Occupational Medicine said: “The Society of Occupational Medicine (SOM) welcomes DWP’s proposed fit note pilots, particularly the workability plan. The current fit note system is not working. Too many people who could potentially be supported to stay and return to work are not.
“The fit note reform offers clear benefits for employees, employers, and the NHS. SOM anticipate the pilots will generate useful data to improve how fit notes will support employees, alleviate GP pressures and help bridge the gap between employers and employees.
“SOM will be interested to see if the pilots will support better health outcomes through reduced absenteeism, and improved retention. SOM looks forward to working with the DWP to achieve a better fit note system.”
Charlotte Osborn-Forde, Chief Executive of The National Academy for Social Prescribing: “We are pleased that social prescribers – also known as link workers – will play a part in the fit note pilots.
“Link workers can support people with social issues that affect their health, including loneliness, isolation and problems with debt or housing.
“They focus on what matters to people and connect them to community-based support – including advice on money or housing, carers’ support, physical activity groups or local activities. There is strong evidence that this approach can benefit wellbeing and mental health.
“No one who is unable to work should be pressured into doing so, but this voluntary scheme should help join the dots between the NHS, employers and communities, and help people get the right support for wider issues that affect their health.”
Head of Policy and Practice at the Royal College of Occupational Therapists, Joe Brunwin, said: “These pilots are a real chance to help more people stay in or return to work and are centred around a core skill of occupational therapy: understanding people as individuals and considering how their environment and circumstances affect their ability to work.
“Fit note evaluations and pilots show occupational therapists are more likely to take a work-focused approach, using ‘may be fit’ advice and adjustments to support return to work. As well as signing fit notes occupational therapists can provide clinical supervision and governance for non-clinical staff.
“It’s encouraging to see a shift away from a purely medical approach to work absence, towards taking a more holistic approach.
“We look forward to seeing how this initiative makes use of occupational therapy expertise and how we can continue to work together as part of a multidisciplinary team, supporting people to stay in, return to and thrive in work.”
Supporting families with the cost of living and eradicating child poverty will be a key focus of the Scottish Government, First Minister John Swinney has said.
Ahead of a visit to meet parents and children at a Bookbug session in Wester Hailes the First Minister said tackling the cost of living, ensuring people get support before reaching a crisis, and helping children and parents in the early years will be key priorities for the new Cabinet.
In March, the Scottish Government set out plans to drive further reductions in child poverty. This includes committing an additional £500,000 over two years to expand Bookbug, supporting a further 20,000 low-income families across Scotland.
Mr Swinney said: “Every child in Scotland deserves a future free from the scourge of poverty. It will be the defining mission of my government to support families with the cost of living and eradicate child poverty.
“Our policies are already helping to keep an estimated 100,000 children out of relative poverty this year – but we are determined to deliver truly ambitious change to reduce the cost of living.
“This includes expanding all year round childcare to all children from nine-months to the end of primary school, introducing a £2 nationwide cap on bus fares, increasing the Scottish Child Payment to £40 for under-ones and delivering comprehensive ‘Whole Family Support’ that wraps around families in their communities, helping break the cycle of poverty.”
Social Justice and Housing Secretary Shirley-Anne Somerville said: “I am delighted to take on the role of Cabinet Secretary for Social Justice and Housing.
“I look forward to driving further progress on the work started in the last parliamentary term to eradicate child poverty, tackle the cost of living and accelerate the delivery of more affordable homes.
“Reducing child poverty in Scotland is at the heart of this government’s ambitious agenda for change and we will work across government, the parliament and with our much-valued third sector, to give families the safety and security they need.”
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.”
