Chancellor Rishi Sunak laid out the UK government’s new three-point job retention scheme and announced a VAT cut to 5 per cent for the hospitality industry until 12 January 2021.
However, he made no direct mention of the events industry, despite opening his speech by saying that "no one will be left without hope...where problems emerge, we will confront them. Where support is justified, we will provide it. Where challenges arise, we will overcome them."
Sunak also announced the government will give everyone 50 per cent off meals in participating restaurants during August to get the hospitality economy rolling again. The decision was welcomed by Jane Pendlebury, CEO of the Hospitality Professionals Association (HOSPA), who described the Chancellor’s announcements as delivering a "real blaze of sunshine" for the hospitality industry.
"The reduction in VAT is absolutely massive news for the hospitality industry. As an industry, we’ve long been lobbying for reduced VAT to bring us in line with other European countries that already offer favourable rates to help drive tourism," she said.
"The reduction will provide businesses operating on wafer-thin margins with some essential breathing space, helping them to recover and rebuild, as well as to retain more jobs. All in all, then, the Chancellor’s announcements today are wonderful news for our industry and offer not just light at the end of the tunnel but a real blaze of sunshine.
"The additional announcement of the ‘Eat out to help out’ vouchers is yet another much needed and very welcome boost, and it’s a move that will not only help businesses but should also help to encourage consumers to return."
Sunak also announced a new job retention bonus for employers who bring back furloughed staff. The bonus will offer employers £1,000 per employee who returns to work. "The employee must be paid £520 each month through to January. This would be a £9bn policy to retain people in work,” Sunak said.
However, Joss Croft, UKinbound CEO warns that while the chancellor’s economic recovery plan clearly recognises the value of hospitality and tourism, the 'Job Retention Bonus Scheme' will only help those that are able to survive into next year. "These measures will not help the many businesses involved in inbound tourism who drive regional economies and jobs, and who are on the brink; longer-term support will still be required for these businesses, which have been hit even harder than domestic and outbound.”
In relation to helping the hospitality industry, the ‘Eat Out to Help Out’ discount will cover up to £10 per head for adults and children between Monday and Wednesday.
"To get customers back into restaurants, cafes and pubs and protect the 1.8 million people who work in them. I can announce today that for the month of August, we will give everyone in the country an 'Eat Out to Help Out' discount on meals eaten at any participating business," the chancellor said.
"Each week in August businesses can then claim the money back with the funds in their bank account within five working days," the chancellor added.
He also announced a halt to stamp duty on transactions up to £500,000 until March 2021 and called for the UK’s recovery to be a ‘green recovery’. This will be achieved, he said, through a £2bn Green Homes Grant under which "homeowners and landlords will be able to apply for vouchers to make their homes more energy-efficient and create local jobs." The grants will cover at least two-thirds of the cost, up to £5,000 pe household. However the government didn't allude to this policy would be extended to commercial buildings, such as event venues.
A desire to travel led Holly Patrick to the business meetings and events world and she’s never looked back. Holly takes a particular interest in event sustainability and creating a diverse and inclusive industry. When she’s not working, she can be found rolling skating along Brighton seafront listening to an eclectic playlist, featuring the likes of Patti Smith, Sean Paul, and Arooj Aftab.
