Rachel Reeves pledged to cut the cost of theme parks and soft play centres this summer as she unveiled a package to help with the Iran shock.The Chancellor said VAT on family attractions and kids' meals will be cut from 20 per cent to 5 per cent from June until September.That would be roughly £5 off a ticket for Legoland, or just over a pound off a child's meal at a high street chain like Pizza Express. In a Commons statement, she also announced that duty was being trimmed on products such as chocolate and biscuits.But Ms Reeves did not mention plans for price caps on shopping essentials after a furious backlash. And she said there would be no move to help Brits with energy bills at this stage - making clear if there is a bailout it will only be for those on benefits.Keir Starmer said he wanted to help struggling families 'make memories' in the coming months. However, there were concerns that retailers will now have to amend menus, change pricing structures and refund cash to customers who have booked ahead. Tory frontbencher Mel Stride questioned whether Ms Reeves was being 'serious', adding: 'Does the Chancellor really think this is enough?'She also faced union criticism from the TUC, with general secretary Paul Nowak saying she needed to be 'bolder', adding: 'We've barely begun to experience the economic fallout of the Iran war – and the threat to living standards is going to grow as the war drags on.'Among the details in the package are:A 10p per mile increase in tax-free mileage rates backdated to April 2026, and a 12-month road tax holiday for heavy goods vehicles (HGVs);The measures will be funded by changes to taxing oil and gas companies with overseas operations that are expected to raised 'hundreds of millions of pounds';The summer VAT cut will also apply to zoos, museums, soft play, and kids' cinema tickets, as well as children's meals in restaurants;Children in England will get free bus travel during the school holidays in August. Chancellor Rachel Reeves pledged to cut the cost of theme parks and soft play centres this summer in a Commons statement What families could save with Reeves' summer VAT cut Legoland ticket: £42With 5% VAT: £36.75London Eye: £28With 5% VAT: £24.50Pizza Express kid's meal: £8.50With 5% VAT: £7.44Whipsnade Zoo: £22.40With 5% VAT: £19.60 Announcing the temporary VAT relief as part of her 'Great British Summer Savings' scheme, Ms Reeves said: '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 per cent VAT to 5 per cent as well.'Ms Reeves trumpeted import tariff cuts on more than 100 types of product, saying it will save consumers more than £150million a year.She said: 'I expect supermarkets to pass these savings on in full to their customers.'Mr Stride likened Ms Reeves' statement to when she dropped the cuts to the winter fuel allowance.He said: 'Nobody bought it then, and nobody is buying it now. Once again we have a weak Government caving in to the inevitable after spending months defending a truly terrible decision.'Ms Reeves did not announce any immediate help with rising energy bills.The household energy price cap is predicted to rise by £209 a year from July after the closure of the Strait of Hormuz pushed up global oil and gas prices.The Government has made clear it will wait until September before finalising any package of targeted support for households over the winter months, when more energy is used.Mr Nowak added: 'With the new energy price cap set to be announced next week, the government will need to be bolder to shield workers and households from Trump's illegal war.' The plan to suspend tariffs on some food imports is part of the Government's wider effort to combat rising prices.The full list of products will be published next week but is expected to include biscuits, chocolate, dried fruit and nuts.Writing on Substack, the PM said it was 'not right' that 'for too many families those things – a trip to the seaside, a visit to the zoo, a bus ride into town for a day out, even a simple treat at the end of the week – are starting to feel out of reach'.'This summer, we are making it easier and more affordable for families to get out, spend time together, and make memories they will cherish for life,' he wrote.He said the VAT cut on summer activities and free bus travel for children would mean 'the cost of a day out drops overnight'.'It means more freedom for parents and more independence for young people. Opportunities to explore towns, parks, seaside resorts and countryside that might otherwise have felt out of reach.'The Government was providing 'a serious response' to the 'concerns people have about the months ahead'.Sue Rathmell, VAT Partner at MHA, said: 'While at first sight this seems to be a win-win for both holiday makers and business in terms of greater footfall it is not without significant challenges for companies. 'It will be time consuming and costly for businesses to recalculate their prices and amend their menus, displays and websites. Where a retailer has already received payment for tickets supplied for the period 25 June – 1 September 2026, the government expects retailers to refund the additional VAT to their customer.'This will potentially be a lengthy exercise for retail businesses who will have to work quickly to get their systems set up for the change. Undoubtedly businesses will be relying on the VAT reduction bringing in a whole lot more customers to offset their extra costs.'The shift on price caps came after supermarkets and even the Bank of England lined up against the 'completely preposterous' concept, while Kemi Badenoch branded it 'Soviet'.It had emerged the Treasury was pushing supermarkets to cap the cost of essentials such as eggs, bread and milk. That was despite ministers branding an SNP price-fixing scheme in Scotland 'bananas'. The proposal was described as 'mad' by one City analyst, while Bank of England governor Andrew Bailey told MPs price caps were 'not sustainable' in the long run.Last month I met with supermarkets that are doing all that they can to keep prices low. Treasury Chief Secretary Lucy Rigby said in a round of interviews this morning: 'I'm happy to be able to tell you we're not introducing mandatory price caps.'What there have been are discussions between the Chancellor and the supermarkets, as indeed there've been discussions with other industries too, about how we try and put some downward pressure on prices so that we can be helping people with the cost of living.'Mr Bailey told the Treasury Select Committee: 'If you start doing it as a matter of course then effectively you're artificially moving prices relative to costs and that's not a sustainable thing.' M&S chief executive Stuart Machin said ministers should instead consider reversing the tax and red tape burdens they are piling on to firms which are driving up costs.'It's completely preposterous,' he added. 'I don't think the Government should be trying to run business. I think they should be trying to probably understand business better.' Bank of England governor Andrew Bailey told MPs price caps were 'not sustainable' in the long runHe said retailers were already working to keep prices down at a time when businesses are facing a 'triple whammy' of higher costs from tax, red tape imposed by the Government, and disruption caused by the Iran war.Justin King, ex-boss of Sainsbury's, told Sky News: 'Competition is what keeps prices honest and this is a very competitive market.'Louise Hellem, chief economist of the CBI, Britain's biggest business group, said: 'Retailers are already competing fiercely to keep prices low for customers.'The row overshadowed better than expected figures showing inflation fell from 3.3 per cent in March to 2.8 per cent in April.The figures, which showed food inflation is falling, revealed retailers were 'taking a big responsibility to try and minimise passing through prices' to customers, Mr Machin said.