According to data for 2026, the breakdown of VAT across the economy is as follows:

    Standard Rate (20%): Covers roughly 50% of household expenditure.
    Reduced Rate (5%): Applies to approximately 2.5% of expenditure, including items like domestic fuel, power, and children's car seats.
    Zero-Rated (0%) and Exempt: These categories account for the remaining 47.5% of expenditure.

Key Zero-Rated Categories
While the exact percentage for zero-rating alone (separate from "exempt") is often grouped in high-level economic reporting, major components of the zero-rated economy include:

    Basic Food: Most groceries (bread, milk, vegetables).
    Children’s Items: Clothing, footwear, and car seats.
    Publications: Books, newspapers, magazines, and digital e-publications.
    Transport: Passenger travel, such as international and domestic flights and train tickets.
    Health: Sanitary products (zero-rated since 2021) and prescriptions.
    Exports: Goods intended for export outside the UK are typically zero-rated to ensure international competitiveness.

For further details on specific item classifications, you can refer to the official VAT rates for goods and services on the GOV.UK website.