Chancellor Rishi Sunak to Cut VAT as Part of Plan to Prevent Mass Unemployment
By: Chloe Rabinowitz Jul. 08, 2020
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:
Pleased to confirm VAT cut from 20% to 5% for "attractions" announced by @RishiSunak includes
Shows, Theatres, Circuses, Fairs, Amusement Parks, Concerts, Museums, Zoos, Cinemas & Exhibitions We will announce further steps on path to reopening shortly@EquityUK #PlanForJobs pic.twitter.com/V04WNPMXQM - Oliver Dowden (@OliverDowden) July 8, 2020
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