Dear Constituent,
Thank you for contacting me about hospitality businesses reopening.
I know that many hospitality businesses in Dumfries & Galloway have experienced challenges as a result of the Covid-19 outbreak. I sympathise with any employees who may be facing redundancy during this difficult time.
To help them through this difficult time, I welcome that decisive action has been taken to support businesses through a combination of grants, funds and a business rates holiday. As restrictions are eased, it is good to see that most businesses are re-opening in our communities.
The Department for Business Energy and Industrial Strategy has published guidance to help hospitality businesses reopen safely for customers and workers. I hope that by adhering to these guidelines, businesses will give customers the confidence they need to return safely.
In addition, the Chancellor has launched the Eat Out to Help Out scheme to encourage customers to eat out on Mondays, Tuesdays and Wednesdays at restaurants, pubs and cafes that sign up to the scheme between 3 to 31 August. Furthermore, the Business and Planning Act 2020 will enable hospitality businesses to make the most of summer trading with alfresco dining.
All retail, hospitality and leisure businesses will benefit from paying no business rates for this 2020-21 financial year, regardless of their rateable value. This relief applies to over 350,000 properties and is worth almost £10 billion.
I welcome that as part of the Chancellor’s Plan for Jobs, the rate of VAT applied on most tourism and hospitality-related activities is being cut from 20 per cent to 5 per cent for six months. This will save households around £160 per year on average and, together with the Eat Out to Help Out Scheme, will support over 2.4 million staff at over 150,000 businesses, helping them recover and reopen after the Covid-19 lockdown.
I am pleased that New clause 23 (Government) has been added to the Finance Bill 2020 as it enables the Treasury to specify that payments of tax and other liabilities that are deferred by agreement during a period of national disaster or emergency will not attract interest or surcharges.
Ultimately, I am encouraged that the Government is engaging with industry representatives to monitor the situation and identify what support is needed. I understand that measures will be kept under review and I will continue to follow any developments closely.
Thank you again for taking the time to contact me.
Kind regards, Alister