Covid 19 - What you need to know – Chancellor Announces VAT cut on food, accommodation and attractions.
In his Economic Statement to the House of Commons the Chancellor, Rishi Sunak, announced a number of measures to support employers and especially the hospitality sector including a job retention bonus, a new scheme entitled “Eat out, to help out” and cut in VAT.
The cut from 20% to 5% will take effect from next Wednesday for 6 months (until 12th January 2021) and apply to sales of food in the hospitality trade, accommodation and attraction admissions.
This measure, specifically aimed at the hospitality sector, was deemed necessary by the Government in recognition of the great pain endured by the sector during the crisis. The Government cited figures claiming 80% of hospitality businesses closed as a result of Covid19.
We shall keep you updated.