Summer statement 2020: the chancellor’s key points at a glance
VAT cut for hospitality – New headline figure of 5%
The Chancellor wants to see pubs, restaurants, cafes and B&Bs ‘bustling again,’ telling MPs: ‘At the moment, VAT on hospitality and tourism is charged at 20 per cent
‘I’ve decided, for the next six months, to cut VAT on food, accommodation and attractions.’
VAT will be reduced from 20 per cent to 5 per cent from 15 July until 12 January to help, noting: ‘This is a £4billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4million jobs.’
Eat Out to Help Out
Here are measures to help get customers back into restaurants, cafes and pubs.
‘I can announce today that, for the month of August, we will give everyone in the country an “Eat Out to Help Out,”‘ Rishi says.
‘Meals eaten at any participating business, Monday to Wednesday, will be 50 per cent off, up to a maximum discount of £10 per head for everyone, including children. Businesses will need to register, and can do so through a simple website, open next Monday.
‘Each week in August, businesses can then claim the money back, with the funds in their bank account within five working days.’
Eric Snaith owner of multiple award winning sites Eric’s fish and chips said “These measures will give us a boost in what has been a bad time for most. Many customers struggle to see VAT as part of our offering (esp at 20%), so the reduction could help us immensely. We will also look at the discount scheme too, although 2 of our shops are in seaside areas so July and August should be busy anyway. The furlough scheme pointers look agreeable too.”