Chancellor says she will raise tax on global oil giants to help meet costs of plans and confirms freeze on fuel duty increases

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Rachel Reeves will cut VAT to 5% on summer attractions such as theme parks and softplay centres during the school holidays, as she aims to ease the impact of the war in Iran on cash-strapped households.

The chancellor told MPs on Thursday she would also raise more tax from global oil firms operating in the UK, to help meet the costs of her plans.

Chancellor launches ‘Great British summer savings scheme’ after Keir Starmer postpones fuel duty increase

• Planned fuel duty rise to be scrapped, says Keir Starmer

Rachel Reeves is to promise free summer bus rides for children and cut tariffs on some food imports, as part of a package of measures aimed at easing the costs of the Iran conflict.

The chancellor will give a statement in the House of Commons on Thursday, outlining her latest plans for cushioning the blow to consumers from an expected rise in inflation later this year.