Sunak turns focus on hospitality sector in mini budget

Chancellor Rishi Sunak is hoping to reignite the hospitality sector by slashing VAT to 5% and introducing a discount scheme to encourage people to eat out in August.

The chancellor is cutting VAT on food, accommodation and attractions for six months from 20% to 5%. He is also launching an ‘Eat Out to Help Out’ scheme where the government will subsidise 50% of meals eaten at participating restaurants in August to the value of £10 a head.

Sunak has also announced a Job Retention Bonus for employers who bring staff back following furlough. Employers will be paid £1,000 per employee brought back and kept in employment through to January, as long as employees earn at least £520 each month from November to January.

To help young people, Sunak is also launching the Kickstart Scheme, which will pay employers to create jobs for 16- to 24-year-olds. The government will pay young people’s wages for six months if hour and pay requirements are met. Employees will also be paid £1,000 to take on trainees and £2,000 to take on apprenticeships, with a further bonus for taking on those aged 25 and over.

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