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Home News British news

UK Treasury Chancellor, orders at Wagamama launching "Eat Out, Help Out" - IG

British Gov. to foot 50% Of Restaurant, Pub Bills To Stimulate Recovery with “Eat Out to Help Out” Initiative

by Olusegun
8 months ago
in British news, Economy
Reading Time: 3min read
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British Gov. to foot 50% Of Restaurant, Pub Bills To Stimulate Recovery with “Eat Out to Help Out” Initiative

The British government announced Wednesday that it will foot 50% of the bill for diners and pub-goers during the month of August as part of an effort to boost the economy after months of coronavirus lockdown.

The U.K. Treasury launched the “Eat Out to Help Out” plan pledging a 50% discount of up to £10 per head for every diner at any participating restaurant, café, pub or eligible food service establishment.

The discount can be used unlimited times throughout the month of August, and will be valid Monday to Wednesday on “any eat-in meal,” but can’t be used for alcoholic beverages.

NEWCASTLE UPON TYNE, ENGLAND – JULY 04: People sit at a table and have a drink on the first day of pubs reopening at the Job Bulman pub in Gosforth on July 04, 2020 in Newcastle upon Tyne, England. The UK Government announced that Pubs, Hotels and Restaurants can open from Saturday, July 4th providing they follow guidelines on social distancing and sanitising. (Photo by Ian Forsyth/Getty Images) GETTY IMAGES

This initiative aims to encourage a return to eating out that will support around 130,000 businesses and protect the jobs of their 1.8 million employees, according to the Treasury’s announcement.

The food and accommodation industry in the U.K. has furloughed over 1.4 million workers since March; the second hardest hit sector following wholesale and retail, which furloughed 1.6 million.


Restaurants, pubs, bars and cafés in parts of England, Scotland and Northern Ireland began welcoming customers for the first time since March on Saturday, though a range of coronavirus restrictions—including capacity limits, protective screens and mandatory table service—have transformed the experience.

The estimated amount of money this plan will cost the British government, according to Yahoo Finance ($629 million).

KEY BACKGROUND

“Eat Out to Help Out” is part of a £30bn mini-Budget package designed to “protect, support and create jobs,” announced Wednesday by Chancellor Rishi Sunak. Other economy-aiding measures include slashed value-added tax (VAT) for businesses in the hospitality and tourism industry, a ‘Kickstart’ jobs scheme for young people and bonuses for furloughed workers back at work.

 

View this post on Instagram

 

Today I set out our Plan For Jobs (link in bio) including: A £1,000 Jobs Retention Bonus. New, high quality jobs for hundreds of thousands of young Kickstarters. More apprenticeships, more traineeships, more skills funding. Billions of pounds of new, job creation projects around the country. A £3bn plan to support 140,000 green jobs. And in this vital period, as we get going again: VAT cut. Stamp duty cut. Meals out cut. All part of our Plan for Jobs worth up to £30 billion. More info via link in bio.

A post shared by Rishi Sunak (@rishisunakmp) on Jul 8, 2020 at 5:14am PDT

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Tags: Chancellor Rishi SunakCOVID-19 BouncebackEat Out to Help OutU.K. TreasuryUK Economy
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