UK Government’s Operational Plan For Restaurant Industry Revival
New figures released by Office for National Statistics (ONS) show that the economy shrunk by 2 per cent in the first quarter of 2020. By contrast, the hospitality industry has been among the worst-hit sectors – with a first-quarter decline of 21.3 per cent. (According to UK Hospitality, industry’s principal trade body) Yahoo! Finance reports that over 33.5 million people in the hospitality industry have lost their jobs since March 2020. This accounts for an unemployment rate of 14.7%. Two out of three restaurant employees have lost their jobs, according to the National Restaurant Association. To help the restaurant industry back on its feet, Chancellor of the Exchequer Rishi Sunak introduced the ‘EAT OUT to HELP OUT’ scheme. Under the EOHO scheme, the government would subsidise meals when dining in at restaurants by 50 per cent. This would be in effect every week from Monday to Wednesday, throughout August. The EOHO is just one of the many schemes designed to provide respite to the food services sector. Other measures include:- Furlough scheme for employees,
- Reduction in VAT to 5 per cent from 20 per cent,
- Small business grants, and
- Temporary changes to license laws and outdoor seating arrangements.
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