Rishi Sunak announced that from next week, all hospitality venues across the UK will benefit from a 15% reduction in VAT, from 20% to 5%, until January 2021.
The Chancellor also announced that in the coming weeks, restaurants and hospitality venues will be able to offer a 50% discount for any customer eating in or taking out from Monday to Wednesday each week.
These schemes constitute an unprecedented support package for the hospitality sector, over 80% of which was forced to cease trading in March as a result of the Coronavirus, resulting in the closure of several businesses and over 2million workers in the sector being put on furlough.
Will Broome, Founder and CEO of retail tech pioneers Ubamarket, comments on the Chancellor’s announcement and the potential impact such measures could have on the hospitality sector.
Broome said, “The announcements made by the Chancellor are extremely significant in terms of the Government’s apparent commitment to kickstart the hospitality sector, which is in dire need of support following over three months of lockdown in which they have been unable to trade effectively, if at all.
'For restaurants, bars and other establishments serving food, the ‘Eat out to help out’ scheme will be of particular interest, as the languishing footfall figures for both the retail and hospitality sectors after Super Saturday have clarified the distinct lack of consumer confidence across Britain – the reopening of the hospitality and retail sectors have not drawn as many crowds as initially thought.
'Hospitality venues must take advantage of these measures to maximise their profits and popularity in the coming weeks – venues which are able to revitalise the customer experience by implementing new approaches and technologies will be even better placed to take advantage of the benefits of the boost, as customers returning to the venue will be encouraged to revisit upon enjoying discounts, but also more convenient and personalised experiences”.
(source: Ubamarket, image: pexels)