The Chancellor has used his mini-Budget to announce the ‘Eat Out Help Out’ scheme, starting in August.
For those businesses that choose to participate, from Monday to Wednesday, guests will get their meals at a discounted rate of up to 50%, up to a value of £10 per head, including children.
Using a new website, commencing Monday 13th July 2020, restaurants and cafés will be able to register, and allowing them each week, to claim and get their money paid back within 5 working days.
For pubs that serve food, they will also be eligible for the scheme, but only non-alcoholic drinks will be included in the discount.
One local restaurant owner said ‘Fantastic…this will be a great way to kick-start my business and get customers through the door’.
It has also been announced that the current furlough scheme, initially set up to help businesses hold on to their staff by paying 80% of their salary whilst not working, will be ‘wound down’ in October of this year.
In its place there will be a ‘new jobs retention bonus’ made available so that furloughed employees can return to work.
Subject to salary thresholds, businesses will be given £1,000 for each of their staff they bring back.
This is just one of the incentives for the hospitality industry, giving them the kickstart they need.
Finally…so more good news!
As a ‘kickstart’ incentive, the government is cutting the VAT rate on hospitality and tourism from 20% to 5%, from 15th July 2020 to 12th January 2021, applying to food and non-alcoholic drinks.
This is another ‘lifeline’ incentive for the hospitality industry to support those that have been hardest hit by this pandemic, cutting the tax on eat-in and hot takeaway food from restaurants, cafés and pubs, many of which have already reopened.
Here at Ho.Re.Ca. Consultancy, we have the knowledge and experience to help you get back on your feet and are here to help.