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Big boost for tourism and hospitality businesses across Cornwall

Big boost for tourism and hospitality businesses across Cornwall

Published by Sarah Yeoman at 6:39am 9th July 2020. (Updated at 12:21pm 9th July 2020)

It has been revealed that over 3,800 accommodation, food and arts businesses across Cornwall could benefit from new measures to boost the economy. 

The government has now committed 190 billion pounds to help the economy recover from coronavirus.

On Wednesday afternoon, the chancellor outlined how the latest 30 billion of that will be spent.

The measures will see VAT for hospitality, accommodation and attraction businesses cut from 20% to 5% for six months.

The move is designed to support the sectors that have been particularly hard hit by the coronavirus crisis, helping businesses to recover and boosting the number of jobs across the country.

MPs across the South West have also urged local people to eat out to help out, following the announcement that the government will pay for up to 50% of people’s meals out at restaurants, pubs and cafes on Mondays, Tuesdays and Wednesdays throughout August.

The Eat Out to Help Out scheme will entitle everyone to a discount of up to 50% on their meal, up to a maximum of £10 per person.

Businesses can claim the money back from the government, which will be paid in five working days. 

Figures show there are over 3,800 accommodation, food and recreation businesses across the whole of Cornwall, which could all benefit from the announcement.

The government says these measures will provide a 'timely and much-needed boost' to the tourism and hospitality industries in the South West, forming a key part of the government’s plan for jobs – supporting people to find jobs, creating new jobs and protecting jobs in hard-hit sectors.

beach holiday tourism

“Today’s announcement by our Chancellor is absolutely fantastic and again shows this Government going above and beyond to support businesses, employees and the economy during this difficult time.”

“I particularly welcome the VAT cuts and eat out incentives, which will be well received for so many local businesses in Truro and Falmouth.”

“I will continue working with the Government to ensure sensible measures such as these are rolled out as we move on with recovering from the COVID-19 crisis.”

Cherilyn Mackrory , MP for Truro and Falmouth

“Today’s announcement by the Chancellor of a £30billion Plan for Jobs is great news for hundreds of local businesses in Mid-Cornwall.”

“It goes further then any Government has gone before in supporting businesses, helping people back to work and encouraging people to spend.”

“In particular the new Jobs Retention Bonus Scheme will encourage employers to support and retain their workforce once the furlough scheme ends with a one-off payment of £1,000 to the business for every employee who was furloughed previously and who is successfully kept on continuously until January."

“Particularly welcome for Cornwall is the temporary cutting VAT to 5% for the tourism and hospitality sectors, giving a much-needed boost to some of the industries hardest hit by coronavirus.”

"And the launching of a new Eat Out to Help Out scheme – something that has never been done in this country ever before – giving people up to 50 per cent off meals out, encouraging them back into restaurants, cafes and pubs, with businesses being able to quickly claim the difference back from the Government, again particularly welcome in Cornwall.”

“Unprecedented measures for these extraordinary times and it is only right that this Government continues to build on the billions already spent in fighting and recovering from the COVID-19 crisis with another package of measures to support people and businesses across our society.”

Steve Double, MP for St Austell and Newquay

The government plans to create and protect jobs in tourism and hospitality by:

  • Temporarily cutting VAT for the tourism and hospitality sectors, giving a much-needed boost to some of the industries hardest hit by coronavirus. From 15 July 2020, we will cut the rate of VAT applied across the UK to hospitality, accommodation and attractions from 20 per cent to 5 per cent until 12 January 2021. This could support almost 2 million businesses and protect 2.5 million jobs.
  • Launching a new Eat Out to Help Out scheme – something that has never been done in this country ever before – giving people up to 50 per cent off meals out, encouraging them back into restaurants, cafes and pubs. Anyone who eats at a participating business, Monday to Wednesday for the month of August, can receive up to 50 per cent off food and non-alcoholic drinks, up to a value of £10 per person. Businesses can claim the money back from the government weekly, receiving funds within 5 working days. Guidance for businesses will be published next week.
  • Rewarding and incentivising employers who successfully bring furloughed staff back through a new Jobs Retention Bonus Scheme. To encourage employers to keep their employees on, we are introducing the Jobs Retention Bonus Scheme, a one-off payment of £1,000 to the business for every employee who was furloughed previously and who is successfully kept on continuously until January. Our message to business is clear: if you stand by your employee, we will stand by you.
Hayle tourism beach

“There is a focus on the hospitality industry to force it back to life with VAT cuts and hot food vouchers. Encouraging people to go on holiday and to spend in restaurants. That means coming to places like Cornwall. People are still wary. Test and trace is not functioning nearly as well enough as it should be to build people's confidence. This isn’t a normal recession. 50% off a burger won’t be enough for people who are scared to go out, and nor should it be.

“Extending furlough selectively to cover industries like hospitality may have been a better option.

“I am pleased to see that on the face of it the government are bringing back the Labour Future Jobs Fund. A focus on jobs for 16-24 year olds is welcome. But what about the self-employed and renters and those who are unemployed?

“De-carbonising public buildings and housing is also welcome. But where are the bold green energy schemes like in Germany’s response? Our geo-thermal, wind, tidal and solar resources are just sat here in Cornwall, waiting for investment to kickstart our green industry potential. We could create new better paid jobs as an alternative to the tourism sector.

“It is hard to see how a stamp duty holiday will help Cornwall unless it is limited to first time buyers or first home owners. Otherwise, it will just make that second home that bit more affordable and end up depleting the housing stock. What we really need are more truly affordable homes.”

Cllr. Jayne Kirkham, Deputy Labour Group leader on Cornwall Council

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