VAT cut could help save summer season for Lancashire businesses

By Napthens

09 Jul 2020

Website
james-allison_businessupnorth.jpg

A leading leisure expert has welcomed the latest government announcement to cut VAT in the tourism sector as a way to support the sector which could save jobs in the leisure industry.

Jamie Allison, from regional law firm Napthens, says a cut on Value Added Tax to five per cent until January will allow business owners to make the most of a staycation boom this summer and hopefully it will assist them recover losses sustained from earlier in the season.

“Only a few months ago, many businesses in the hospitality and tourism sector were writing-off the entire year as a complete loss and discussing redundancies. However, the recent lifting of lockdown on the leisure industries, along with an increase in staycation bookings and now the VAT cut will hopefully at least allow many to help prevent further losses, retain staff and try and look ahead more positively to 2021.

“This cut will hopefully give business owners the options whether to invest back into the business, pay off liabilities or pass something back to the customer by way of discounts to encourage more spending in the long run.

“Additionally, the introduction of a government discount of food spend in August will help to convince people that it is safe to visit the pub or book a table at their favourite restaurant and restart the hospitality industry in the longer term.

“Business owners have been campaigning for a cut on tourism VAT for many years. While nobody wanted a global lockdown to make it happen, the onus is on the sector now to make the most of this benefit and, all being well, prove that it can have a positive impact on increasing domestic tourism and helping businesses to flourish.”

The announcement from the Chancellor Rishi Sunak said business owners would only be required to pay five per cent of Value Added Tax on food, accommodation and attraction entries, including cinemas, zoos and theme parks, between Wednesday 15 July and Tuesday 12 January 2021.

Additionally, the government has announced an ‘Eat Out to Help Out’ discount scheme, to compensate businesses which offer 50 per cent discounts on restaurant meals in August.

Napthens has been offering advice to navigate the coronavirus pandemic with a specially assembled team, offering advice on employment, health and safety, signposting for funding solutions and business support.

For more information on the support available, visit our COVID-19 Hub

Enjoyed this? Read more from Napthens

Latest news

1

Partner promotions at WNJ Stuart Mercer, left, and Matthew Johnson

Partner promotions at WNJ

21 May 2025

2

Accrington-made Vita Advanced Mattress wins prestigious 'Best of the Best' Award at Interzum 2025 Dr. Emily Schweissinger - Evonik, Dr. Roland Hubel - Evonik, Dr Mike Murray - The Vita Group, Natalie Watson - The Vita Group, Chris Hupfeld - Coverstro, Dr. Annegret Terheiden - Evonik and Dennis Wagner - Covestro

Accrington-made Vita Advanced Mattress wins prestigious 'Best of the Best' Award at Interzum 2025

21 May 2025

3

Napthens advises Calico Homes on land acquisition for £23m Dovestone Gardens extra care facility in Burnley Paul Hardy

Napthens advises Calico Homes on land acquisition for £23m Dovestone Gardens extra care facility in Burnley

21 May 2025

4

Construction begins on new Civil Service office building in Talbot Gateway Alan McBride Muse Will Town Defence Infrastructure Organisation Jennifer Chard Defence Business Services Cllr Lynn Williams Blackpool Council Garry Bowker Vinci

Construction begins on new Civil Service office building in Talbot Gateway

20 May 2025

5

Skiddle raises over £750,000 for charities Skiddle cheque presentation to Alder Hey Hospital

Skiddle raises over £750,000 for charities

20 May 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Amber River True Bearing quarterly investment seminar
LBV Hub Seminars
22 May 2025 - 22 May 2025

Amber River True Bearing quarterly investment seminar

Cottons Hotel & Spa , Knutsford, WA16 0SU

16:00 - 18:00

The Business Network Central & East Lancashire
LBV Hub Networking
22 May 2025 - 22 May 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Preston Freelancer Meet-Up: May
Freelancer Meet-Up May.png.png
LBV Hub Networking
22 May 2025 - 22 May 2025

Preston Freelancer Meet-Up: May

society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Liverpool Business Expo 2025
https---cdn.evbuc.com-images-881365363-4862066883-1-original.20241023-085714.jpeg.jpg
LBV Hub Awards
23 May 2025 - 23 May 2025

Liverpool Business Expo 2025

Aintree Racecourse , Liverpool , L9 5AS

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – May 29
Artboard 15.png.png
LBV Hub Seminars
29 May 2025 - 29 May 2025

Advantage: AI – A Workshop for Business Leaders – May 29

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin