Rishi Sunak unveils ‘eat out to help out’ discount scheme

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Everyone across the UK will be able to enjoy half price restaurant meals in the month of August as part of Rishi Sunak’s plans to save the struggling hospitality sector. 

The Chancellor today used his mini-Budget to announce an unprecedented ‘Eat Out To Help Out’ scheme. 

It will allow people visiting participating businesses from Monday to Wednesday to get their food at a discounted rate of up to 50 per cent with firms then claiming back the money from the Government.  

The discount will be capped at £10 per person and it will also apply to children.

Meanwhile, Mr Sunak also announced a temporary VAT cut from 20 per cent to five per cent for the hospitality and tourism sectors.  

Rishi Sunak today announced a ‘Eat Out To Help Out’ scheme to try to save the struggling hospitality industry

The Chancellor said: ‘The final measure I am announcing today has never been tried in the UK before. 

‘This moment is unique. We need to be creative. So to get customers back into restaurants, cafes and pubs and protect the 1.8 million people who work in them, I can announce today that for the month of August we will give everyone in the country an Eat Out To Help Out discount. 

‘Meals eaten at any participating business, Monday to Wednesday will be 50 per cent off up to a maximum discount of £10 per head for everyone, including children.

‘Businesses will need to register and can do so through a simple website open next Monday. 

‘Each week in August businesses can then claim the money back with the funds in their bank account within five working days.’ 

Mr Sunak’s new eating out scheme was one of two major interventions he announced at lunchtime to deliver a boost to the hospitality and tourism industries. 

The other was a significant cut to the VAT rate which applies to food, accommodation and attractions like cinemas. 

Mr Sunak (pictured in the Commons beside the PM) also announced a temporary VAT cut from 20 per cent to five per cent for the hospitality and tourism sectors

Mr Sunak (pictured in the Commons beside the PM) also announced a temporary VAT cut from 20 per cent to five per cent for the hospitality and tourism sectors

Mr Sunak's two-pronged strategy to breathe life back into the beleaguered hospitality sector, which has only began to reopen after being shuttered for three months (Di Maggio's in Glasgow, pictured), was welcomed by industry leaders

Mr Sunak’s two-pronged strategy to breathe life back into the beleaguered hospitality sector, which has only began to reopen after being shuttered for three months (Di Maggio’s in Glasgow, pictured), was welcomed by industry leaders

Rishi Sunak’s mini-Budget at a glance

A £1,000 Jobs Retention Bonus for employers who bring back furloughed workers beyond January, paid per employee, at a total cost of up to £9bn.

Immediately increase stamp duty threshold from £125,000 to £500,000 until March 31.

Cut VAT from 20 per cent to five per cent for hospitality and tourism sectors for six months.

In August everyone will be given ‘Eat Out To Help Out Discount. Apply to meals eat at any participating business, Monday to Wednesday, and will be worth 50 per cent off with businesses claiming cash back. 

New Kickstart Scheme to create hundreds of thousands of new jobs for 16-24 year olds, with Government directly paying wages for six months. 

Pay employers £1,000 to take on new trainees.   

Pay employers for next six months to create new apprenticeships, worth £2,000 per apprentice.

Doubling number of work coaches in job centres and extra £1bn funding for the Department for Work and Pensions to get people back into employment.

New £2bn Green Homes Grant voucher scheme to cover two thirds of cost of home improvements like better insulation, up to £5,000.  

£1bn to make schools and hospitals greener and more energy efficient.  

He said: ‘At the moment VAT on hospitality and tourism is charged at 20 per cent so I have decided for the next six months to cut VAT on food, accommodation and attractions. 

‘Eat in or hot takeaway food from restaurants, cafes and pubs, accommodation in hotels, B&Bs, camp sites and caravan sites. 

‘Attractions like cinemas, theme parks and zoos. All these and more will see VAT reduced from next Wednesday until January 12 from 20 per cent to five per cent.

‘This is a £4billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses and consumers everywhere, all helping to protect 2.4 million jobs.’     

Alcoholic drinks will not benefit from the cut to VAT, but pubs which serve food will be able to take advantage of the Eat Out To Help Out Scheme.  

The two-pronged strategy to breathe life back into the beleaguered hospitality sector, which has only began to reopen after being shuttered for three months, was welcomed by industry leaders.

Kate Nicholls, chief executive of UK Hospitality which represents the pub and restaurant trade, hailed the both the VAT cut and the Eat Out scheme.

She said: ‘It is reassuring that the Chancellor singled out hospitality and tourism as a vital part of the UKs economy and a pillar of social life around the UK. 

She added: ‘This significant VAT cut, heightened ability to retain staff and incentives for consumers to eat out together amount to a huge bonus. 

‘We hope that the UK public rightly sees it as sign that we are ready to welcome them back safely. The future of many businesses and jobs depends on it.’ 

Russell Nathan, senior partner at accountancy firm HW Fisher, said: ‘Our restaurants, pubs, shops and hotels are struggling.

‘This is a timely announcement from Government as businesses are in desperate need of a clear action plan.

‘It is vital we see the hospitality industry back up and running, and these measures announced today will provide an essential lifeline for many UK businesses.’