Rishi Sunak unveils ‘eat out to help out’ discount scheme allowing EVERYONE in the country to get half price meals at participating restaurants up to £10 per head and VAT cut from 20% to 5% on food, hotels and attractions
- Rishi Sunak said UK will be able to get 50 per cent off restaurant meals in August
- Discount to be capped at maximum of £10 per head at participating restaurants
- Restaurants will be able to claim the discounted cash back from the Government
- Chancellor also announced temporary VAT cut for hospitality, tourism sectors
Everyone across the UK will be able to get half price restaurant meals in the month of August as part of Rishi Sunak’s plans to save the struggling hospitality sector.
The Chancellor today used his mini-Budget to announce an unprecedented ‘Eat Out To Help Out’ scheme.
It will allow people visiting participating businesses from Monday to Wednesday to get their food at a discounted rate of up to 50 per cent with firms then claiming back the money from the Government.
The discount will be capped at £10 per person and it will also apply to children.
Meanwhile, Mr Sunak also announced a temporary VAT cut from 20 per cent to five per cent for the hospitality and tourism sectors.
Rishi Sunak today announced a ‘Eat Out To Help Out’ scheme to try to save the struggling hospitality industry
The Chancellor said: ‘The final measure I am announcing today has never been tried in the UK before.
‘This moment is unique. We need to be creative. So to get customers back into restaurants, cafes and pubs and protect the 1.8 million people who work in them, I can announce today that for the month of August we will give everyone in the country an Eat Out To Help Out discount.
‘Meals eaten at any participating business, Monday to Wednesday will be 50 per cent off up to a maximum discount of £10 per head for everyone, including children.
‘Businesses will need to register and can do so through a simple website open next Monday.
‘Each week in August businesses can then claim the money back with the funds in their bank account within five working days.’
Mr Sunak’s new eating out scheme was one of two major interventions he announced at lunchtime to deliver a boost to the hospitality and tourism industries.
The other was a significant cut to the VAT rate which applies to food, accommodation and attractions like cinemas.
Mr Sunak (pictured in the Commons beside the PM) also announced a temporary VAT cut from 20 per cent to five per cent for the hospitality and tourism sectors
He said: ‘At the moment VAT on hospitality and tourism is charged at 20 per cent so I have decided for the next six months to cut VAT on food, accommodation and attractions.
‘Eat in or hot takeaway food from restaurants, cafes and pubs, accommodation in hotels, B&Bs, camp sites and caravan sites.
‘Attractions like cinemas, theme parks and zoos. All these and more will see VAT reduced from next Wednesday until January 12 from 20 per cent to five per cent.
‘This is a £4billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses and consumers everywhere, all helping to protect 2.4 million jobs.’
The move will cut the tax on eat-in and hot takeaway food from restaurants, cafes and pubs, which have started to reopen over the past week.
Russell Nathan, senior partner at accountancy firm HW Fisher, said: ‘Our restaurants, pubs, shops and hotels are struggling.
‘This is a timely announcement from Government as businesses are in desperate need of a clear action plan.
‘It is vital we see the hospitality industry back up and running, and these measures announced today will provide an essential lifeline for many UK businesses.’