- 08 Jul, 2020
Chancellor unveils plan for hospitality boost
The Chancellor today has revealed the biggest package of support for the economy in decades as he sets out the plan to help Britain bounce back from coronavirus.
VAT on food, accommodation and attractions. is going down until January from 20% to 5%. Rishi Sunak has announced a 6 month VAT cut on Restaurants, Food Outlets, Accommodation and Attractions in a bid to get the industry back on its feet and to protect jobs. The reduction of VAT for the hospitality and tourism industry will come into effect from Wednesday next week. He told MPs he will cut VAT on food, accommodation and attractions from 20% to 5% ,from next Wednesday.
This cut will apply to eat-in or hot takeaway food from restaurants, cafes and pubs, accommodation in hotels, B&Bs, campsites and caravan sites, attractions like cinemas, theme parks and zoos. Mr Sunak said this "£4bn catalyst" would help protect "over 2.4 million jobs".
Mr Sunak also announced an "Eat Out to Help Out" discount, which he said would help protect 1.8 million jobs.
Meals eaten at any participating business, Monday to Wednesday, will be 50% off in August, up to a maximum discount of £10 per head for everyone, including children. Businesses will need to register, and can do so through a website, open next Monday and apply in the month of August, the chancellor said in his statement.
He says the scheme will help people “Eat Out to Help Out” the hospitality sector. The discount will not apply to alcohol, but to food and soft drinks up to £10 per person. Mr Sunak said the plan was aimed at getting "customers back into restaurants, cafes and pubs" and protecting "the 1.8 million people who work in them". Businesses that want to take part in the scheme will have to register through a website that opens on Monday 13 July. Mr Sunak said: "Each week in August, businesses can then claim the money back, with the funds in their bank account within five working days."
A website will be made available from Monday for restaurants to register for this. We will update this page when links to the scheme are available.
Update - 09/07/2020 Please visit https://www.gov.uk/government/publications/get-more-information-about-the-eat-out-to-help-out-scheme/get-more-information-about-the-eat-out-to-help-out-scheme for more information on the scheme.
The Chancellor also announced a £1000 Job Retention Scheme Bonus, which gives a grant to businesses who bring back furloughed staff. If you are an employer and you bring some back who was furloughed and you continue to employ them to January the government will pay you this bonus. “The employee must be paid £520 months each month through to January,” he says. “This would be a £9bn policy to retain people in work. If you stand by your workers we will stand by you.”