Rishi and his "mini-budget"

It's a slightly cold and wet Wednesday afternoon. Hump day right? Well let me turn that frown upside down!

There has been some great new from Chancellor Rishi Sunak in his announcements for the mini Budget, especially for the whole hospitality sector.

Let's start with the basics. There's a lot of information we are still waiting for, and the processes and ways to participate will be released soon. We will keep you updated on this as it comes in.

Overall Sunak continued with his support of the economy and employees and stated, "Our message to business is clear - if you stand by your workers, we will stand by you."

So what is the run down for hospitality? Here's the main points for our industry:

• VAT is being cut from 20% to 5% (excluding alcohol). This comes into effect on July 15th and will continue until January 12th 2021. We have previously written about the hope of a cut in VAT, find that here.

• Hospitality diners will be able to benefit from the "Eat out to help out" discount scheme. This will be available any time from Monday to Wednesday in the month of August, and will allow them to receive a 50% discount on their bill, up to £10ph (again this will not apply to alcoholic sales). Businesses will have to register with the government and claim this back, costing the Treasury an estimated £500m.

• Unfortunately the furlough scheme will end October 31st. As great as this scheme is Sunak has stated it is not something that can continue forever.

• There will be a retention bonus of £1,000 for every furloughed employee that is brought back to work and continuously employed until the end of January 2021. The employee must be employed from the months of November until the end of January and earn an average of more than £520 per month during that time.

• For the next 6 months the government will pay a business £2,000 for every new apprentice they take on, and £1,500 if they are aged over 25.

• The "Plan for Jobs" scheme will see the government subsidise jobs for young people aged 16-24. If employers offer a 6 month placement for apprentices in this age group, the Treasury will pay 100% of the National Minimum Wage for up to 25 hours per week worked by that apprentice. Firms will then be able to top up the employees pay.

This is some great news for our currently struggling industry and should hopefully help give us a boost over the next few months. If only the weather could be sunny so we could make use of that outdoor space!

More information to follow...

All information included in this post is valid as of date of publication, 8th July 2020.