The UK government’s Summer Statement was met with a lukewarm welcome from the travel industry, with the BTA saying new measures deliver a ‘limited kickstart’.
Chancellor Rishi Sunak said VAT on hotel accommodation, restaurant dining and other hospitality providers will be cut from 20 per cent to 5 per cent from Wednesday, 15 July.
The move will protect more than 2.4 million jobs, he claimed.
Sunak also revealed the government will pay firms £1,000 for every employee they keep on for three months after its furlough scheme comes to an end in October.
“Today’s announcement gives a limited kickstart to our industry,” says Clive Wratten, chief executive of the Business Travel Association.
“We welcome the support for returning employees to work and the VAT reduction for UK accommodation,” he adds.
However, the government has still not laid out support plans for the meetings and events industry, although Prime Minister Boris Johnson has indicated there will be an announcement later this week.
“Yet again the Chancellor and the government have not listened to the many outspoken voices of the business events and meetings industry asking for financial help to save jobs and keep the industry alive,” says Lex Butler, chair of the HBAA.
“Whilst we support and welcome the boost to hotel accommodation, restaurants and leisure attraction businesses, how and when will the business events and meetings industry be considered? We need to save ‘jobs, jobs, jobs’ in the £70 billion business events, accommodation and meetings sector now.”
Butler continues: “We need financial support immediately. We need a reduction in VAT for our sector, on venue bookings and event organising services, and we need a delay in paying corporation tax to support the many businesses which are in dire financial straits.
“The news we desperately need is a start date for meetings and events. Today’s announcement is yet another blow for an industry that is, quite frankly, on its knees and our people are massively affected today and potentially in the future.”