Chancellor announces support for Hospitality in today’s budget #News
Victoria Hayes
3rd March 2021
It is slightly surreal watching Rishi Sunak, Chancellor of the Exchequer announce his budget a year after he announced the first support for those affected by Coronavirus. What a year it’s been.
Following the Prime Minister’s announcement of the road map to freedom, gave us a timeline for our fabulous hospitality businesses reopening, and now we need to know what support will be available and how we pay for it.
Mr Sunak announced today some measures that will certainly help.
The furlough scheme which has helped to support so many businesses retain workers, will be extended until September. The Self employment support scheme will also continue with a 4th and 5th Grant available.
There will be no increase in income tax, national insurance or VAT.
The apprentice ship schemes have been extended again offering £3000 per apprentice taken on at any age.
Importantly, with current grant schemes coming to an end, the government is announcing New restart grants.
These will be £6000 for non essential retail but for the hospitality and leisure sector, who have to wait longest to reopen and will continue to face some restrictions will be able to apply for grants of up to £18000.
Bounceback loans are also coming to an end, and these will be replaced by a New Recovery loan scheme, with amounts from £25,000 to £10 million. The government will offer a guarantee to lenders of 80%
The 100% business rates holiday will continue to the end of June.
Hospitality will also benefit from the 5% reduced VAT being extended to 30th September. This will be followed for the next 6 months with an interim rate of 12.5%.
Plus, the previously announced raise in duty on Spirits, wines, cider and beer have been cancelled. All Alcohol duties are frozen for the second year in a row.
The fuel duty increase has also been cancelled.
We are so pleased the Chancellor has recognised the challenges facing our industry and has announced a budget with help for our sector.
It’s our turn now, when we are able to safely, to work hard, play hard and support local.