Eatery boss: Chancellor has rustled up vital help
BUSINESSES in Burton and South Derbyshire are breathing a sigh of relief after the announcement that VAT is to be cut across the hospitality sector until next January.
The move announced by Chancellor Rishi Sunak earlier this week, is aimed at kick-starting the economy and allowing those hardest hit by coronavirus to retain staff.
James Weeks, who runs The Dial bar and restaurant in Station Street, Burton, said the news was the “most positive” thing he had heard in the past four months and added the Chancellor “will have saved a dramatic number of jobs”.
Mr Weeks said: “It’s been a desperate time for our industry and I think Rishi Sunak has done a superb job.
“It was very welcome news and the areas he has focused on would’ve otherwise crippled our industry if the Government did nothing.
“There’ll be lots of businesses that, prior to the announcement, would’ve been thinking about redundancies, but instead he’ll have saved a dramatic number of jobs.”
Mr Weeks said the VAT cut and the discount Eat Out to Help Out scheme would “give businesses a chance to recoup money and customers the chance to get confidence in dining out”.
Under the scheme, the Government will pay for up to 50 per cent of people’s meals out at restaurants, pubs and cafes on Mondays, Tuesdays and Wednesdays throughout August.
Diners will be entitled to a discount up to a maximum of £10 per person for food and soft drinks. Mr Weeks said: “We will definitely be part of the scheme.
“The Government will have been fully aware that those who didn’t go under this year will have struggled next year and the changes to VAT alone will have helped.
“Many restaurants will have deferred VAT for a year to March 2021 and will have been facing two large bills they wouldn’t have money to pay so this will allow them the time to make that money back.” Mr Weeks, who has reopened the doors of The Dial to the public, added: “We’ve had a superb start back but we’re trading in a new world. This news is very positive and we look forward to welcoming guests.”
Nik Hardy, owner of Hardy Signs in Wetmore Road, is the Burton Chamber of Commerce president.
He said: “I’ve spoken to a number of those chamber members in the hospitality industry in recent weeks and their concern for the future was evident. This statement represents a significant, positive step which should aid those businesses as they emerge from what have been very uncertain times.
“At a time when we are encouraging consumers to get out there and support our local hospitality industry, the VAT cut will further assist those businesses to retain their staff, to turn a profit and to gradually recoup losses made during closure.
“A key point will be how much of the cut will benefit the customer. The Chancellor has indicated that he expects the measures to reduce prices and encourage spending.
“However, there’s nothing in place to force businesses to lower prices – it’ll be at their own discretion.
“It’s a time for both businesses and consumers to work together and secure a longer term success of our economy.”
In South Derbyshire, MP Heather Wheeler said the move would benefit up to 410 businesses in her constituency alone.
She said: “I’m pleased to support these new measures taken to support businesses and I hope people will support local pubs and restaurants and take part in the Eat Out to Help Out scheme.
“The new scheme and cut in VAT will provide a lifeline to many businesses.”