Chancellor Rishi Sunak has reduced VAT for the hospitality and tourism industry from 20 per cent to 5 per cent until January 12, 2021.
The measure comes into play from Wednesday of next week, and Sunak says it’s been drawn up to benefit over 150,000 businesses in our industry.
“The best jobs programme we can do is to restart these sectors and get our pubs, restaurants, cafes and B&Bs bustling again,” Sunak said, in a speech to MPs this afternoon.
“I know people are cautious about going out. But we wouldn’t have lifted the restrictions if we didn’t think we could do so safely. I’ve seen in the last few weeks how hard businesses are working to make their premises safe.”
Sunak has also introduced an “Eat Out to Help Out” initiative to support restaurants. Customers will be able to get 50 per cent discounts – up to £10 per head – on sit-down meals and non-alcoholic drinks at participating venues, between Mondays and Wednesdays in August.