UKHospitality asks for VAT and rates help after worst year on record
Monday, February 1, 2021
Only one of five hospitality companies has sufficient cash flow to survive beyond February, new research by UKHospitality shows.
Latest figures from UK Hospitality's quarterly turnover monitor, together with the CGA, show the devastating impact of the pandemic on the industry by 2020, with turnovers slumping 54% to a loss of £72 billion.
The declines of the sector are thought to be more than 2 percentage points off general government GDP.
It's more than ten times worse than the impact on restaurants of the 2008 crisis.
Reducing VAT to 5% for another 12 months and ensuring that it is applied across the restaurant sector to boost business
A second bank holiday will be introduced for the hospitality industry in 2021 / 2021/22 to protect the environment and repair enterprises.
UK Hospitality CEO Kate Nicholls said: "Put simply, hospitality is battling for survival. Our sector has been the hardest hit sector by the pandemic and is staring into the abyss. But if the right conditions and support are put in place, we could be justifiably optimistic of the future role hospitality can play in returning the country to growth and boosting employment.