Chancellor Rishi Sunak is to cut VAT for hospitality and tourism as part of a package to prevent mass unemployment as the economy is hit by coronavirus. He told MPs he will cut VAT on food, accommodation, and attractions from 20% to 5% from next Wednesday.
This cut will apply to eat-in or hot takeaway food from restaurants, cafes, and pubs, as well as accommodation in hotels, B&Bs, campsites, and caravan sites, and attractions like cinemas, theme parks, and zoos.
Calls to extend the furlough scheme beyond the end of October 2020 have been rejected by the government. However, firms will be paid a £1,000 bonus for every staff member brought back from furlough and continuously employed by them for three months when the furlough scheme ends. The government has explained: "For businesses to get the bonus, the employee must be paid at least £520 on average, in each month from November to the end of January - the equivalent of the lower earnings limit in National Insurance."
The chancellor also announced a £2bn "kickstart scheme" to create more jobs for young people.
Hopefully the above will further help the economy move forwards.
Chancellor Rishi Sunak cuts VAT in emergency plan to save jobs