A Hospitality Budget
Today the Chancellor has spoken and has delivered his Budget to take the country out of the Pandemic and into 2021,it would appear that he heard many of the requests made by the Hospitality industry with the continuation of many of the support vehicles and where support is to be removed such as the reduction in the VAT rate the return to the old system is tapered giving time to adjust.
Below we set out the key items which impact on hospitality and those who retail alcohol. We note the comments of trade and key voices such as UK Hospitality as to some of the weaknesses in the Budget but hope that this will be sufficient and that the roadmaps issued by each of the regional executives is not deviated from so that business can start to rebuild.
- VAT rate for hospitality firms to be maintained at reduced 5% rate until September
- Interim 12.5% rate to apply for the following six months
- Business rates holiday for firms in England to continue until June with 75% discount after that
- £5bn in Restart grants for shops and other businesses forced to close
- £6,000 per premises for non-essential outlets due to re-open in April and £18,000 for gyms, personal care providers and other hospitality and leisure businesses
- Business rates holiday extended to June
- All alcohol duties to be frozen for second year running
- No extra duties on spirits, wine, cider or beer
- £1bn Towns Fund fund to promote regeneration in 45 English towns
- £150m for community groups to take over pubs at risk of closure