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 centreDi Maggio's outdoor restaurant area in Glasgow city centre
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.

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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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