Chancellor Rishi Sunak has announced plans to slash UK VAT from 20% to 5% for parts of the hospitality sector, and introduced a discount dining scheme to inject cash into the restaurant industry.
A reduced rate of VAT will be applied to food, both eat-in and takeaway, for six months from 15 July until 21 January 2021, in an effort to protect livelihoods.
Throughout the month of August, diners will also all be encouraged to eat out again under the 'Eat Out to Help Out' dining scheme. "Meals eaten at any participating business, Monday to Wednesday, will be 50 percent off, up to a maximum discount of £10 per head for everyone, including children," Sunak announced to the House of Commons.
In order to participate, restaurants "will need to register, and can do so through a simple website, open next Monday," the chancellor outlined.
"Each week in August, businesses can then claim the money back, with the funds in their bank account within five working days."
Diners need simply to eat out at a participating restaurant, bar, pub or cafe in August on a Monday, Tuesday or Wednesday.
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