With guidelines relaxing and more industries being allowed to return to work, the government has come up with some measures to get the hospitality industry back on its feet.
The government is doing this through three separate initiatives; a VAT cut, the Eat Out to Help Out Scheme and the Job Retention Bonus. We thought we’d make it easy and explain what these initiatives are, and how they affect you and our economy.
Your VAT bill has been served…
The VAT amount has been cut from 20% down to 5% in the hospitality industry.
This is brilliant for restaurants, especially with the difficulties around cash flow, the reduced number of people going out to eat, and the government guidelines meaning restaurants can’t currently operate at full capacity.
As a customer, you aren’t necessarily benefiting from the reduced pricing in this aspect. It will be up to the restaurant whether they will reflect this in their prices. However, customers will be benefiting from the Eat Out to Help Out Scheme, which will run through August, Monday to Wednesday in the week, and is 50% off meals per head up to £10.00.
Meaning, if you go out as a couple, it’s not just £10.00 off your bill, it is per head, which is great!
So, what’s on the menu?
Going back to the VAT cut, certain restaurants have made changes to their menu, with the main one being Wetherspoons. They have announced they’re releasing a special menu due to the cut and reducing prices on some of their products. This is to help incentivise people to go out, spend a bit of money in the industry, and help the economy out.
To find out what restaurants near you are participating in the scheme, visit the government website here.
Employees get a bite too!
The government has also set-up an incentive to bring back employees. It runs for all sectors and is called the Job Retention Bonus. This will massively help the hospitality industry with bringing back people, and should stop mass redundancy.
What is the Job Retention Bonus? Well, it’s a one-off bonus of £1,000 for each employee that is brought back and employed through until January.
Why January? Well, the government originally said three months after furlough finishes, which is the end of October, making January the end date. The government will pay out the bonuses then.
It’s important to note that this doesn’t apply to just any employee, it’s predominantly full-time employees. The guidelines stipulate that employees must earn above the National Insurance lower earnings limit, which is roughly £520.00 a month. So not just part-time staff, which people might be a little bit confused about.
There you have it. These three initiatives are designed to help out the hospitality industry, get everyone back on their feet, get people out there spending again, and help out restaurants who will be struggling.
We think it’s great what the government is doing and we’re excited to support our economy, enjoying a meal out in the process!
If you have any questions about any of these points, or you’d like further clarification, just give us a buzz. That’s what we’re here for, to help you out and keep you informed with what’s going on.
Stay safe, take care and enjoy your dinner!