London. To ease families’ finances this summer, the British government has decided on a summer reduction in VAT for leisure activities, which includes cultural outings as well as the hotel and catering sector. From June 25 to September 1, VAT will drop from 20% to 5% for children’s meals in restaurants and entry tickets to tourist attractions, but also to museums. The measure also aims to stimulate outings and concerns the whole of the United Kingdom (England, Wales, Scotland and Northern Ireland).
If the initiative starts from a good intention, it is not without creating complications in the sector. Firstly, it will not apply systematically to all British museums. Access to the permanent collections of major national museums, which is free, is by definition excluded. The measure will also not be able to apply to museums benefiting from a VAT exemption for their cultural activities, for example when the organization is managed by volunteers. “There is also another group of museums who are only required to register for VAT if their taxable turnover exceeds £90,000 (€104,000))”, explains Kerry Sykes, technical advisor to Charity Tax Group. This group represents the financial interests of charitable structures, a specific status across the Channel, of which museums are a part. “Small local cultural sites may therefore not be affected”notes the advisor.
The establishments which can apply this reduction have received the measure in a mixed manner. Its implementation will generate significant administrative complexity for a very limited duration and gains. “Large museums have accounting systems that will need to be modified to be able to issue a correct VAT invoice, it will be the same for cash register systems, explains Harriet Latham, also a technical advisor for Charity Tax Group. They may need to bring in external consultants. » The expert also wonders to what extent this reduction will really have an incentive effect on family outings. “A ticket for a family worth 21.50 pounds (€24.85) would increase to 18.80 pounds (€21.73), It won’t make much difference.” she comments.
For all these reasons, some museums may choose not to pass on this reduction in ticket prices. “Many charities have faced a substantial increase in their costs over the last twelve months, and even two years, due to increases in social security contributions and the minimum wage,” says Kerry Sykes.
The Postal Museum ready to play the game
Despite everything, Laura Wright, the general director of the Postal Museum in London, decided to adopt the government measure. She does not consider it as one-off aid to museums and approves the choice to support households during a period of general price increases. “Support for the sector is a completely different issue, she indicates. I hope this measure will encourage families to get out more this summer. » Laura Wright has therefore chosen to pass on the savings made to visitors by lowering ticket prices throughout the period. She acknowledges the complexity of the task in terms of ticketing and financial monitoring, but is positive about the potential benefits in terms of increasing the number of visits. “Overall, we expect a positive impact, especially since museums are generally less crowded in good weather. »
His optimism, however, comes in a difficult context of falling attendance. According to data published at the end of April by the Department of Culture, the number of children aged under 16 who visited British national museums in the 2024-2025 financial year was 7.7 million, or 10% less than in 2023-2024.
