‘Manna from heaven’ - The Varsity Hotel in Cambridge welcomes VAT cut for tourism and hospitality industry
The Chancellor’s VAT cut for the tourism and hospitality industry has been welcomed by a Cambridge hotel.
Rishi Sunak announced in his Summer Statement that VAT will be cut on food, accommodation and attractions - such as cinemas, zoos and theme parks - from 20 per cent to five per cent from next Wednesday until January 12.
Responding, Roberto Pintus, general manager at The Varsity Hotel & Spa, said: “The Varsity Hotel in Cambridge operates both rooms and restaurants.
“The announcement today that the government will cut VAT on accommodation and dining is manna from heaven for our business. The industry will be able to pass this saving on to consumers, which will act as a much-needed catalyst for demand, improving sales and income, which will allow businesses throughout the land to recover.
“As we rebuild from the negative impact of coronavirus, the hospitality industry is likely to need continued support.
“It is positive that the government has shown its commitment to the sector and demonstrated that it is prepared to put its money where its mouth is to protect businesses and jobs. However, to make a real difference the VAT cut will need to go on for longer than six months.”
The Chancellor also unveiled an Eat Out to Help Out scheme for August, through which the government will give diners 50 per cent off in participating restaurants up to £10 per head for adults and children from Monday to Wednesday.