Monday, 8th March 2021
Number of initiatives
Last week’s Budget included several initiatives to help businesses –large and small. And support is necessary in a world in which Covid has curtailed so much business activity. Hospitality businesses will be helped by continuation of the furlough scheme and the support for payment of business rates is a bonus for many operators. Super-deductions for investment will also be a benefit as businesses seek to grow, although all, except the smallest, will see their resulting profits taxed at higher levels.
Some people will no doubt consider this support insufficient, and it will almost certainly not be enough to save some businesses over the coming months. But, of course, hospitality, just like all other businesses, is not kept alive by support based on its costs. More crucial, because it affects the long term as well as the immediate, is demand. And this is something that the government has helped in some ways, for example, helping to keep prices down: alcohol duty is being frozen; and VAT, although rising to12.5% from September, will not be back at its pre-pandemic 20% for a year.
Read the full report on several initiatives to help businesses here.
The Monthly Hospitality Briefing for February 2021 is now available.
Peter provides consultancy on the eating out market and opens eyes to brand new ways of thinking about the sector and its multiple opportunities for success.