Summer economic update: Chancellor announces VAT cut and discount scheme for hospitality sector

Cut to 5% for six months

James Baxter-Derrington
clock • 1 min read

Chancellor of the Exchequer Rishi Sunak has announced VAT is to be cut to 5% for the hospitality sector, along with an “eat out to help out” discount at restaurants in his summer economic update.

The hospitality sector, including food (and non-alcoholic drinks), accommodation and attractions, will see VAT cut from 20% to 5% from 15 July 2020 until 12 January 2021, which will provide a "£4bn catalyst", according to Sunak. Further to this, Sunak announced an "eat out to help out" discount for the month of August, which will enable "participating businesses" to offer a 50% discount to customers who eat out at restaurants. The discount will only be available from Monday to Wednesday throughout August, up to a maximum of £10 per head on a bill, including food and non-alcoholic drin...

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