New measures will boost tourism and hospitality businesses across the South West

The Chancellor has announced a much-needed boost for tourism and hospitality businesses in the South West, as part of his Summer Economic Update to kickstart the economy post-coronavirus.

• VAT to be cut for six months for all businesses in the hospitality, accommodation and attractions industries, including thousands in the South West
• Public urged to ‘Eat Out to Help Out’ with new voucher scheme to encourage people to support local restaurants throughout August

The measures will see VAT for hospitality, accommodation and attraction businesses cut from 20% to 5% for six months. The move is designed to support the sectors that have been particularly hard hit by the coronavirus crisis, helping businesses to recover and boosting the number of jobs across the country. Up to 29,815 businesses could stand to benefit from the measures in the South West.

MPs across the South West have also urged local people to eat out to help out, following the announcement that the government will pay for up to 50% of people’s meals out at restaurants, pubs and cafes on Mondays, Tuesdays and Wednesdays throughout August. The Eat Out to Help Out scheme will entitle everyone to a discount of up to 50% on their meal, up to a maximum of £10 per person. Businesses can claim the money back from the government, which will be paid in five working days. Up to 15,340 businesses in the South West could benefit from the move.

Taken together, these measures will provide a timely and much-needed boost to the tourism and hospitality industries in the South West, forming a key part of the government’s plan for jobs – supporting people to find jobs, creating new jobs and protecting jobs in hard-hit sectors.

Owner and founder of Total Guide to, Liz Hutchings commented: "For our sector/situation and many of our clients we really couldn't have asked for more from Rishi Sunak's summer budget.

I've been nervous about the Furlough scheme gradually being phased out from next month and ending in October. Many businesses will have been starting to panic and  let Furloughed staff go. The Job Retention Bonus will definitely take some of the fear away and save jobs.

That coupled with the "kickstart scheme" to get unemployed 16 to 24-year-old into work and new payments for businesses hiring apprentices should greatly help us avoid a major unemployment crisis and future skills shortage.

The temporary VAT cut for hospitality and tourism and the "Eat Out to Help Out" scheme will no doubt help a lot of our clients in the hospitality and leisure sector.

The £1 billion for local projects to boost local economic recovery in the places that need it most could be beneficial to some of our TGt locations.

Hopefully this boost in confidence for all will get the economy going. I just hope that things are back to 'normal' by the time many of the schemes end in Spring 2021. That being said, there is a lot for us to be positive about for now so should all use the help and rally together to get things moving and make sure we are in a good place for when that does eventually happen!"