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    Chancellor Rishi Sunak has announced several measures in an emergency mini-budget in Parliament aimed at injecting cash into the hospitality industry following lockdown.

    On Wednesday 8 July, the chancellor delivered an emergency mini-budget where he outlined changes that will come into effect in the hospitality sector this summer.

    Mr Sunak explained that the VAT on hospitality and tourism would be reduced from 20 per cent to 5 per cent, a move that would come into effect from 15 July and remain in place 12 January 2021, which Mr Sunak estimates will benefit “over 150,000 businesses and consumers everywhere”.

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    The chancellor said that this move would be a “£4 billion catalyst for the hospitality and tourism sectors” which will help to “protect 2.4 million jobs”.

    Mr Sunak also informed the House of Commons of an upcoming discount that diners will be able to take advantage of in August, in order to encourage more members of the public to eat out at restaurants since the easing of lockdown measures in England.

    After being closed around the time that nationwide lockdown was established on 23 March, businesses including pubs and restaurants were allowed to reopen to diners on 4 July.

    What is the new “Eat Out To Help Out” scheme?

    Addressing the Commons, Mr Sunak announced the reduction of VAT from 20 per cent to 5 per cent in the hospitality sector, in addition to a 50 per cent discount on restaurant meals in August.

    The chancellor said: “I can announce today that, for the month of August, we will give everyone in the country an ‘Eat Out To Help Out’ discount”.

    Throughout the month of August, everyone in England will be entitled to 50 per cent off their meal when they dine out at participating restaurants.

    These restaurants “will need to register, and can do so through a simple website, open next Monday,” the chancellor outlined.

    The discount will allow customers a maximum discount of £10 off per person, including children.

    It will be available to use by consumers on Mondays, Tuesdays and Wednesdays throughout the month.

    How will the remaining cost of the bill be paid?

    The government has said that it will ensure all remaining money from the bills at participating restaurants, pubs and cafes is paid back when the discount comes into effect.

    Having registered to be a part of the scheme through the soon-to-be-launched website mentioned by Mr Sunak, the businesses will then be able to claim back funds, he stated.

    “Each week in August, businesses can then claim the money back, with the funds in their bank account within five working days,” the chancellor stated.

    Mr Sunak said that it is “vital” that the country sees “the hospitality industry back up and running”, stating that the newly announced measures “will provide an essential lifeline for many UK businesses”.

    To find out how safe it is to dine out during the coronavirus pandemic, read out expert guide here.

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