On 8 June, the Chancellor of the Exchequer, Rishi Sunak, gave his summer economic statement in which he set out a ‘Plan for Jobs’ to continue the UK’s recovery from the Coronavirus outbreak.
The Chancellor noted that tourism had been one of the worst affected sectors; below is a summary of the key points from the Chancellors statement for tourism businesses:
- The rate of VAT applied on most tourism and hospitality-related activities will be cut from 20% to 5%.
- To encourage people to safely return to eating out at restaurants, the Government has set up a new Eat Out to Help Out discount scheme. It will provide a 50% reduction for sit-down meals in cafes, restaurants and pubs across the UK from Monday to Wednesday every week throughout August 2020.
- A bonus scheme worth up to £9 billion for firms has been announced to re-employ furloughed workers. An employer who brings someone back off furlough, and keeps them in a job until January, will get a £1,000 bonus. To get the bonus, firms must pay at least £520 each month.
- A new £2 billion Kickstart Scheme will be launched to create fully subsidised jobs. Businesses will be given £2,000 for each new apprentice they hire under the age of 25. This is in addition to the existing £1,000 payment already provided for new 16-18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan.