Diners will receive a 50% discount from the restaurant bill during August, as the government plans to support the beleaguered hospitality sector.
Chancellor Rishi Sonak revealed the discount “Eating Out for Help” as part of a series of measures to restart the economy amid the coronary virus pandemic.
The deal means that people can get a discount of up to £ 10 per person if they eat out between Monday and Wednesday.
Mr. Sonak also said that the value-added tax on hospitality and tourism will decrease to 5%.
The amount will be reduced from 20% for the next six months.
While announcing the opponent, the chancellor said that the UK faces a “unique moment” because of Covid-19, adding: “We need to be creative.”
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Bars and restaurants reopened on Saturday after more than three months of closure, with safety measures in place to prevent the spread of the coronavirus.
Mr. Sunak sought to reassure the public that it is safe to eat. “I know people are cautious about going out. But we wouldn’t have lifted the restrictions if we didn’t think we could do it safely,” he said.
The discount will not apply to alcohol, but to food and soft drinks up to 10 GBP per person.
The Treasury said that a 50% discount can be used unlimited times during August and applies to participating restaurants, cafes and bars across the UK.
Sonak said the plan aims to “return customers to restaurants, cafes and bars” and protect “1.8 million people working in them.”
Companies that wish to participate in the program will have to register through a website that opens on Monday, 13 July.
Mr. Sunak said: “Every week in August, companies can claim the money again, with the money in their bank account within five working days.”
He added that the reduction in value-added tax, from 20% to 5%, would apply to “eating hot food or fast food from restaurants, cafes and bars; hotel accommodations, bed and breakfasts, camps and caravan sites” [and] Tourist attractions such as movie theaters, parks and zoos. ”
The lowest tax rate will be applied next Wednesday, July 15, and will remain in effect until January 12, 2021.
“The coming challenges”
The United Kingdom Hospitality, the industry body that represents the industry, warmly welcomed these moves, as well as Mr Sunak’s plans to eliminate unemployment through plans such as creating thousands of jobs for young people.
However, Kate Kate Nichols, CEO of UK Hospitality, said, “This does not mean we are out of the woods and there are still great challenges ahead.
“The biggest of them is the specter of rental obligations, which many companies have been facing since their closure. We will need government support on this matter before too long.”