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Summer economic update 2020: Hospitality incentives

The hospitality sector welcomed much needed government support in the economic update as the chancellor announced the 'Eat Out to Help Out' discount scheme to boost customer demand as businesses in the sector look to reopen.

The chancellor announced that the government would help support the hospitality industry by reimbursing costs for offering half-price meals at a maximum of £10 per head between Mondays and Wednesdays. Businesses can submit claims within five working days throughout August 2020.  

The government recognises the support they need to give to the hospitality sector in a bid to protect millions of jobs and prevent more businesses from closing. The announcement will assist hospitality businesses to open for the first time since closing in March, and give them the confidence that they will be able to open for the foreseeable after the coronavirus lockdown. We want to support our clients in the reopening of their businesses and encourage them to take these actions and make the most of the support offered by the government. 

Businesses will need to register for the “The Eat out to Help Out” through the Gov.uk website before they can offer the discount. The offer is exclusive to the ‘quieter’ days of the week Monday to Wednesday throughout August 2020 and is capped to £10 per head per meal. The amount of the bill not paid by the customer will be recoverable by the government in a move to help speed up the recovery of the struggling hospitality industry.     

A temporary VAT cut from 15 July to January 2021 will also provide a short-term boost to the economy by giving more money for people to spend by incentivising consumers. At a time where social distancing measures are still in place, this is much needed to help the survival of businesses. The cut will apply to eat in or hot takeaway food and non-alcoholic drinks from restaurants, cafes and pubs.

Hospitality employers might also want to consider taking on some of the new initiatives to employ and train the under 25s. In A plan for Jobs 2020, the government have launched a Kickstarter Scheme and incentives for traineeships and apprenticeships. More guidance can be found here.

These are great incentives to get the hospitality sector moving again and a much welcomed boost for restaurants to encourage customers back through their door and to keep their businesses going.

Looking for more information?

If you have a query about any of the topics mentioned in this article, please fill in the form below and one of our experts will be in touch.

About the author

Samantha Newton

+44 (0)20 7556 1227
newtons@buzzacott.co.uk
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The chancellor announced that the government would help support the hospitality industry by reimbursing costs for offering half-price meals at a maximum of £10 per head between Mondays and Wednesdays. Businesses can submit claims within five working days throughout August 2020.  

The government recognises the support they need to give to the hospitality sector in a bid to protect millions of jobs and prevent more businesses from closing. The announcement will assist hospitality businesses to open for the first time since closing in March, and give them the confidence that they will be able to open for the foreseeable after the coronavirus lockdown. We want to support our clients in the reopening of their businesses and encourage them to take these actions and make the most of the support offered by the government. 

Businesses will need to register for the “The Eat out to Help Out” through the Gov.uk website before they can offer the discount. The offer is exclusive to the ‘quieter’ days of the week Monday to Wednesday throughout August 2020 and is capped to £10 per head per meal. The amount of the bill not paid by the customer will be recoverable by the government in a move to help speed up the recovery of the struggling hospitality industry.     

A temporary VAT cut from 15 July to January 2021 will also provide a short-term boost to the economy by giving more money for people to spend by incentivising consumers. At a time where social distancing measures are still in place, this is much needed to help the survival of businesses. The cut will apply to eat in or hot takeaway food and non-alcoholic drinks from restaurants, cafes and pubs.

Hospitality employers might also want to consider taking on some of the new initiatives to employ and train the under 25s. In A plan for Jobs 2020, the government have launched a Kickstarter Scheme and incentives for traineeships and apprenticeships. More guidance can be found here.

These are great incentives to get the hospitality sector moving again and a much welcomed boost for restaurants to encourage customers back through their door and to keep their businesses going.

Looking for more information?

If you have a query about any of the topics mentioned in this article, please fill in the form below and one of our experts will be in touch.

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