The CEO of Simply Business has welcomed the Chancellor’s announcement of VAT cuts in the hospitality industry to help kickstart the UK economy.
Alan Thomas said that Rishi Sunak’s financial decision to implement tax cuts will help businesses at risk of closing for good after months of closure due to the coronavirus lockdown.
In parliament earlier today, Mr Sunak also unveiled the “Eat Out to Help Out” scheme where diners at restaurants, pubs and cafes will receive 50% off.
Mr Thomas’ statement reads: "Few businesses have been hit as hard as those in the hospitality industry, and that’s especially true for small and microbusinesses.
“If the UK’s to recover economically, we know small businesses need to bounce back – and we welcome the Chancellor's announcement today, which we expect to provide an additional boost on the journey back to some form of normality for these traders.
“Any tax cuts will bring huge relief to firms – especially smaller businesses who tend to have less cash reserves and liquidity available to help them weather the storm.
“From our research we know small businesses in the food and beverage sector stand to lose £21,000 each on average in lost work, earnings and loan repayments. Meanwhile over half (55%) are at risk of permanently closing, most likely within 3-6 months (19%).
“These figures help to shape the challenge ahead, but there’s room for optimism. Super Saturday was a welcome boost for many businesses who for the first time in months were able to welcome customers through their doors.
“As restrictions continue to ease, we’re encouraged by the continued resilience being shown by businesses – welcoming paying customers back safely and supporting the revival of our economy.”
The full ‘A Plan for Jobs 2020’ documents are available here: https://www.gov.uk/government/publications/a-plan-for-jobs-documents
