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Editor's Viewpoint Eat Out to Help Out Success- Bring it Back for Christmas (If Current Restrictions Are Successful) CLH Digital

Issue 23

The recent lockdown rules introduced are a significant blow to the sector. However, we must be grateful for small mercies and the fact that the sector has not been universally locked down is something to be at least in part thankful for. (Although the spectre does hang over us!) EDITOR

Gatherings of more than 6 people are now prohibited, however during the government’s Eat Out to Help Out” initiative I spent a lot of time lunchtime and evening “surveying” various establishments to see how busy they were and how the scheme in general was operating.

Peter Adams

Although I was not particularly looking at individual table numbers, looking back most people I saw in various pubs and restaurants were not in parties greater than 6. So hopefully at present the restriction of no more than 6 people will not have a significant impact in the short-term. In the long-term of course particularly during the festive period it will have a significant effect. I was hoping that the success of August’s eat out to help our scheme (EOTOH) which saw over 100 million meals sold and, to date, raised £250 million for the Treasury in various taxes, (although by the end of the month I expect this to be significantly more when all the figures are collated) would motivate the Chancellor to reintroduce the scheme in December. There are 13 weeks between now and December and a lot could happen. One thing is for certain the sector needs more relief and support. Furlough comes to an end next month, it would be all but impossible for the sector to continue to operate under the current restrictions without additional support. I really do fear mass redundancies in the sector if government does not provide funding and relief.

Industry leaders are calling on the government “to extend business rates relief, for a continuation of the VAT cut to food and soft drinks, and a sector specific furlough extension as well as a significant cut in alcohol duty. I would go even further if I were the Chancellor and I would announce a huge incentive. If the country gets behind the current social gathering restrictions and it does lead to a significant reduction in Covid-cases, the reintroduction of the EOTHO scheme for Christmas would give the country a huge lift! Difficult though the restrictions were in April May June July, they were summer months, light evenings warm weather, lockdown and isolation in winter will be significantly different, leading to other unrelated issues in particular depression. The incentive of an EOTHO festive period as a reward for successfully bringing the spread of the virus under control would be warmly welcomed by the public. One thing the pandemic has thrust into the spotlight, is the tax burden the industry is forced to endure. Well not only taxes but costs in general, costs are high margins are low, and we have in recent weeks seen a “bonfire of the chains”, with Pizza Hut chain the latest to seek a creditors voluntary arrangement and is to close down 29 of its sites. High rent and business taxes are often cited, but the general over-taxation of the hospitality sector, which has been accepted year on year has placed such a burden on the industry that many outlets large and small are simply illprepared for economic downturns. Thankfully as seen in this issue there is now cross-party support to reduce the burden of VAT in tourism. The Chancellor’s decision to reduce VAT until January 2020 in the sector to 5% has given a huge boost in difficult times, but the rest of the EU have been enjoying these reductions for many years. Our VAT levels on hospitality and accommodation were prior to the pandemic twice that of other EU countries. This is a drum we here at CLH News have “been bang-

ing” for many years and I am pleased to bang it once again!

PUBLISHED BY

The hospitality sector is unique in as much as the whole country at some stage uses it. No matter what the occasion is, families, friends, work colleagues even strangers will embrace the pub, restaurant or hotel to celebrate or commiserate.

RBC Publishing Ltd Roddis House, Old Christchurch Rd, Bournemouth, Dorset, BH1 1LG

Providing relief to the sector is providing relief to the wider public. The Chancellor faces some of the most difficult decisions any Chancellor has in modern history, but the solutions are staring at him in the face!

TELEPHONE:

The call for cutting VAT is not new, the evidence has been there for many years, the eat out to help our scheme was probably the most welcome boost to the public for decades, so Chancellor keep the VAT level of 5% at least until January 2023 when we can examine and evaluate how successful it has been. January 2021 is just too short a period. Once again we have some of the industry’s leading lights forward/experts to give an insight on not only the crisis itself but also to advise with guidance and best practice on how to help you through this crisis and get ready to trade and prepare for a Staycation stampede! Visit our website for our “Staycation Your Country Need You” Poster available to download. Only the hospitality sector can put some cheer back into the country, showcasing the wonderful diverse vibrant UK!

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EDITOR Peter Adams

SALES EXECUTIVES David Bartlett Guy Stephenson

PRODUCTION & DESIGN Matthew Noades

PRODUCTION & WEB ADMIN Shelly Roche Published by

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