VAT cut and ‘eat out discount’ to help hospitality firms

Chancellor Rishi Sunak has announced a major new package of support for the struggling hospitality and tourism industries, including an unprecedented government-backed discount for eating out.

Di Maggio's outdoor restaurant area in Glasgow city centre

VAT will be slashed for all food outlets, accommodation businesses and public attractions from 20% to just 5% for six months, cutting the tax bill for 150,000 businesses by £4bn.

The Treasury said the measure would save households around £160 per year on average.

The UK Government will also launch a voucher scheme giving 50% discounts on all meals eaten out from Monday to Wednesday, up to a value of £10 per person, including children.

‘Eat out to help out’ discounts will be available every week in August and will be redeemed via a government website.

The Chancellor told MPs that the support would encourage the public to go back out and support newly reopened hospitality businesses. 80% of hospitality firms stopped trading in April and 1.4 million hospitality workers have been furloughed.

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