Borg-Neal – Five key steps needed to ensure that hospitality can play a lead part in a post-covid economic recovery: Peter Borg-Neal, founder and chairman of Oakman Inns, has set out the five key steps that are needed to ensure that hospitality can play a lead part in a post-covid economic recovery. On the back of the latest support from the chancellor Rishi Sunak, Borg-Neal said that although this is a “useful lifeline”, it is only a “lifeline” and more help is required from the government. He said: “It is important to not be churlish and recognise that today’s announcement from Rishi Sunak is a useful lifeline that will provide some short-term support for our beleaguered sector. However, it clearly is only a lifeline. It is important that we clearly and calmly communicate what will be required to ensure that hospitality can play a lead part in a post-covid economic recovery. In my view there are five key steps that we need the chancellor to take. Firstly, confirmation that the Coronavirus Job Retention Bonus will be reinstated or replaced. This money was promised from the dispatch box and businesses have it in their cash flow forecasts. Secondarily, an extension of Business Rates relief for the sector for another year. This would represent a saving equivalent to 50% of rent and can be utilised to fund those arrears. Thirdly, the reduction in VAT on food to 5% must be made permanent. Hospitality has been severely overtaxed in recent years and reducing that burden will enable rapid recovery whilst supporting tourism – the UK’s third largest export. Fourthly, hospitality businesses should be allowed to use their corporation tax losses incurred during the pandemic to offset other tax liabilities including VAT and PAYE. This will eventually be self-funding. Finally, the Eat Out To Help Out scheme was a fantastic success which stimulated demand helping the whole of the economy – particularly the supply chain. It was brilliantly executed by the Treasury and hugely popular. Let’s do it again when we can reopen.” info from Propel Newsletter
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