Hospitality Industry: Coronavirus

(asked on 19th October 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the loss of revenue to the public purse from the UK hospitality sector as a result of covid-19 lockdown restrictions.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 22nd October 2020

HM Revenue and Customs (HMRC) has not made an estimate of revenue lost from the UK hospitality sector as a result of Covid-19 lockdown restrictions.

This sector is a vital source of employment across the country, and in addition to the government’s unprecedented Covid-support package, we have prioritised support for hospitality businesses over the last 6 months by introducing several targeted measures to support the sector. This includes:

  • A 12-month business rates holiday for all eligible retail, leisure and hospitality businesses in England
  • The Retail, Hospitality and Leisure Grant Fund
  • The Eat Out to Help Out Scheme, which subsidised 100 million meals through August
  • A temporary reduction in the VAT rate from 20% to 5% on most tourism and hospitality-related activities – extended until the end of March.

However, the Government recognises that the sector has been acutely disrupted by recent restrictions introduced by the Tier system. Through the Chancellor’s Winter Economic Plan, government will protect jobs and struggling businesses across the most impacted areas of the UK.

The Job Support Scheme will guarantee that most workers working a minimum of 20% of hours receive at least 73% of their usual wages, while workers whose employers have been closed by health restrictions will be guaranteed two thirds of their wages.

And hospitality, leisure and accommodation businesses in Tier 2 and Tier 3 areas will be eligible to receive a grant of up to £2,100 and £3,000, respectively, according to the value of their premises. Sufficient funding will be allocated to Local Authorities to distribute.

Reticulating Splines