Chancellor Rishi Sunak to Cut VAT as Part of Plan to Prevent Mass Unemployment

BBC News has reported that Chancellor Rishi Sunak will cut VAT on hospitality as part of a £30bn plan to prevent mass unemployment in the UK due to the health crisis.

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When the furlough scheme ends in October, the government will pay firms a £1,000 bonus for every staff member kept on for three months.

Sunak also announced a plan to give 50% off to people dining out in August. He told MPs he will cut VAT on food, accommodation and attractions from 20% to 5%.

He shared:

"If you're an employer and you bring back someone who was furloughed - and continuously employ them through to January - we'll pay you a £1,000 bonus per employee.

"It's vital people aren't just returning for the sake of it - they need to be doing decent work.

"So for businesses to get the bonus, the employee must be paid at least £520 on average, in each month from November to the end of January - the equivalent of the lower earnings limit in National Insurance."

About the VAT cut, Oliver Dowden tweeted:

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