Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Corporate Services  New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
  • Video Insights
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / News / Chancellor cuts VAT on hospitality as part of £30 billion rescue plan

Chancellor cuts VAT on hospitality as part of £30 billion rescue plan

Thu, 09 Jul 2020 | BUSINESS NEWS

Chancellor Rishi Sunak has announced a £30 billion plan to prevent mass unemployment due to the impact of COVID-19, including a temporary VAT cut on food, accommodation and attractions from 20 per cent to 5 per cent.

Sunak described the cut, which will last for an initial six months, as a “£4 billion catalyst” that could help to save “over 2.4 million jobs. It will apply to eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, as well as hotel, B&B, campsite and caravan site accommodation and at attractions such as cinemas and zoos.

In a blow to pubs and licensed businesses, the VAT cut does not apply to alcoholic drinks, which will remain liable to the 20 per cent rate.

The Treasury said that it hoped firms would pass the VAT savings on to customers, but that the decision would be left with businesses. With many of the businesses set to benefit having been without income for months it is uncertain whether customers will see savings.

Genevieve Morris, head of corporate tax at accountants Blick Rothenberg, said it would be “a case of watch and see whether it is the consumer that benefits,” adding that: “The indication from the chancellor’s statement is that he expects this to reduce prices and encourage spending, but many businesses that have had huge losses over the past few months may use this to boost profits by keeping headline consumer prices the same and pocketing the VAT saving – and who can blame them if they did?”

Other measures announced by the Chancellor include a £1,000 bonus to firms for every staff member kept on for three months once the furlough scheme ends and a scheme to offer people 50 per cent off dining out in August.

The £30 billion package brought coronavirus-related public spending up to almost £190 billion. But, despite the positive effect this has had for many businesses, it may complicate the efforts of some looking to go to market as the economy opens up again.

It is possible that potential buyers will start to look more closely as a business’ pre-pandemic performance in comparison with industry averages to assess the actual impact coronavirus has had on the company.

Those who have received government assistance should prepare to explain to potential investors what they did with the money and why.


For more on previous Treasury announcements, check out our reports on the Bounce Back Loan scheme, the Coronavirus Business Interruption Loan Scheme and the cut to Entrepreneurs' Relief in the Spring Budget .

If you are looking for an exit, we can help!


Share this article



Latest Businesses for Sale

Civil Engineering & Environmental Consultancy
UK Wide

This business provides a full range of consultancy services to the construction and utility sectors. Civil Engineering & Environmental Consultancy in the Water Industry.

Asking Price: Offers Invited
Turnover: £2,500,000

LEASEHOLD


Supplier Of Portable Sanitaryware And Associated Components
West Midlands, UK

Provides a diverse range of sanitation products, including handwashing and sanitisation stations, alongside rotational moulding services and portable toilet and welfare facility hire.

Asking Price: Offers Invited
Turnover: £1,151,386

LEASEHOLD


Traditional Home Care Agency
Suffolk, East of England, UK

Traditional home care agency which has been trading successfully since 2010 when it was established by our client.

Asking Price: Offers Invited
Turnover: £674,927

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
09
 
Apr
 

Topshop flagship store up for sale | COMMERCIAL PROPERTY

Topshop's flagship Oxford Street store in London is dra...

 
09
 
Apr
 

Gestamp’s former Washington warehouse hits the market in £6.5m auction | COMMERCIAL PROPERTY

The former Washington base of international car parts manufa...

 
08
 
Apr
 

Decorating contractor targets acquisitions after MBO | MBO/MBI

Scottish commercial decorating contractor Bell Group has com...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
09
 
Apr
 

Gestamp’s former Washington warehouse hits the market in £6.5m auction | COMMERCIAL PROPERTY

The former Washington base of international car parts manufa...

 
09
 
Apr
 

Topshop flagship store up for sale | COMMERCIAL PROPERTY

Topshop's flagship Oxford Street store in London is dra...

 
08
 
Apr
 

Decorating contractor targets acquisitions after MBO | MBO/MBI

Scottish commercial decorating contractor Bell Group has com...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news


About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2021. Business Sale Report Ltd. All rights reserved. www.business-sale.com.