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Chancellors economic update includes VAT cut for hospitality sector, and customer discounts

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The Chancellor had set out his coronavirus recovery package today.

Rishi Sunak set out the measures in his summer economic update in the House of Commons on Wednesday (Jun 8), as he faces pressure to assist those who are most vulnerable to the financial crisis.

The Chancellor said he will cut VAT from 20% to 5% for food if people eat out to help those businesses which he said had been hardest hit by the coronavirus pandemic.

The chancellor announced discount to encourage people to eat out in August.

He says restaurants, pubs, bars and hotels as well as other attractions will be able to claim the money back within five days. It had been reported he was considering giving all UK adults a £500 voucher to spent with companies hit by coronavirus, but the Chancellor has decided not to go ahead with that proposal.

Instead Sunak announced a discount worth up to £10 per head for eating out in August. He said his final measure has never been tried in this country. It is an “eat out to help out scheme”, offering customers as discount worth up to £10 per head when they eat out from Monday to Wednesday in August.

Speaking in the Commons today, he said: “Our plan has clear goals, to protect, support and retain jobs.”

Regards furlough scheme, he said it must wind down, adding: “flexibly and gradually supporting people through to October” but that he is introducing a bonus for employers who bring staff back from furlough.

Employers who bring someone back from furlough and employ them through to January, paying them a minimum of £520 a month, will receive a £1,000 bonus.

He says that “in total we have provided £49bn to support public services since the pandemic began”.

He added: “No nationalist can ignore that this help has only been possible because we are a United Kingdom.”

Mr Sunak says the UK economy has already shrunk by 25% – the same amount it grew in the previous 18 years.

He also announced:

A £2bn kickstart scheme paying employers to take on unemployed 16 to 24 year olds for a minimum of 25 hours a week – he says the Treasury will pay those wages for six months plus a sum for overheads. He says there is no cap. This will apply in England and Wales.

VAT on food from restaurants, cafes, pubs and hotels will be cut until January 12 from 20% to 5%
Funding for apprenticeships and traineeships in England, there will be a separate announcement for Wales.

£1bn for the DWP to support millions of people back to work through Job Centres. A £2bn green homes grant in England to cover two thirds of the cost, up to £5,000, for energy efficient home improvements. Again the Welsh Government will have their own proposals on this given time.

A temporary cut to stamp duty in England and Northern Ireland.

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Business offer Welsh Government help in ‘non-essential’ shopping row

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THIS morning (Tuesday, October 27), the Wales Retail Consortium, CBI Wales and Association of Convenience stores presented the Welsh Government joint recommendation to resolve the confusion over non-essential items.

The three industry bodies’ statement expresses the hope that the Welsh Government, ‘will agree to these recommendations and the people of Wales can refocus all their energies on respecting the Fire Break’.

The recommendations come in response to confused and confusing messaging from the Welsh Government, which allowed its public health message to be drowned out over the weekend by rows over whether toasters, Lee Childs novels, and size 16 jeans were essential items for customers. The confusion was not helped by a mistaken tweet by supermarket giant Tesco which claimed women’s period products were not essential items when they are and always have been.

The WRC, CBI Wales and ACS believe their recommendations will fulfil retail’s role in tackling the spread of the virus while allowing for discretion to be used on an individual basis – as recommended by Health Minister Vaughan Gething in a tense press conference yesterday, http://pembrokeshire-herald.com/61929/welsh-health-minister-defends-retail-restrictions/.

The business bodies recommend:

  • To limit the spread of the virus and allow for individual discretion, retailers will prominently display Welsh Government approved signage in front of known non-essential items and in communal areas. The signage will make clear the government’s regulation and the need to abide by it.
  • This message will be reinforced through in-store announcements and social media messaging. Advising customers to put off non-essential purchases
  • We recommend the individual customer is trusted to make their own decision as to whether a product is non-essential or not, taking into account the notices displayed throughout the store and their immediate needs
  • If the customer goes ahead with the purchase of the item the final liability ought to rest with the customer
  • Retailers will remove special in-store promotional displays of non-essential items in order to minimise browsing and avoid triggering a non-essential purchase.
  • These recommendations would mean non-essential items are not removed from shelves – or cordoned off in stores – but large notices are placed in front of the products and in communal spaces informing customers of the Welsh Government’s regulations and the Welsh public are trusted to make the right decision.

They also say they ‘look forward to engaging with Welsh Government again this morning and we hope consensus can be reached’.

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Llanelli Christmas Carnival goes online

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Preparations are underway to host the first ever virtual Llanelli Christmas Carnival. 

The carnival will go digital for the first time in its 42-year history due to the Covid-19 pandemic and in line with current Welsh Government guidance and increasing concerns about the spread of coronavirus linked to large gatherings. 

Whilst there won’t be the usual street parade, people will be able to get into the festive spirit from the comfort of their own home. 

The online celebration will be hosted as an event on Discover Carmarthenshire’s Facebook page on Friday, November 13. 

Over the years, thousands of people have been involved in the Llanelli Christmas Carnival – either dressing up to enter a float in the parade, volunteering, or simply enjoying the atmosphere with generations of their families. 

They can still get involved this year by sharing photos and video to help people celebrate good memories and help others reminisce about carnivals gone by. 

There will be a broadcast of music from talented local performers who would usually sing from the main stage, and people will still be able to countdown to the switch-on of the town’s Christmas lights. 

The largest Christmas carnival in Wales, Llanelli’s festive celebrations are a joint effort by Carmarthenshire County Council, Llanelli Town Council, Llanelli Rural Council and Llanelli Round Table. 

Cllr Peter Hughes Griffiths, Carmarthenshire County Council’s Executive Board Member for Culture, Sport and Tourism, said: “It’s very unfortunate that we can’t hold Llanelli Christmas Carnival this year, but we’re determined to keep the spirit of the carnival alive. Let’s come together and celebrate one of the biggest events in Wales from the comfort of our homes – celebrate with generations of memories and look forward to a bigger and better carnival next year.” 

Sign up to attend Llanelli’s first virtual Christmas carnival – visit facebook.com/discovercarmarthenshire 

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Free Community Crime Prevention Kits to be distributed in Llanelli area

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OVER the coming weeks, residents from both the Ty Isha and Glanymor areas in Llanelli, Carmarthenshire, will receive free crime prevention kits that will aim to deter offenders and make both communities safer.

The prevention kits have been purchased through funding that was secured from the Home Office’s Safer Street Fund by Police and Crime Commissioner Dafydd Llywelyn.

The funding of £195,673 that was secured by Mr Llywelyn will go towards measures proven to cut crime, and will include employing two Community Wardens; purchase of SelectaDNA kits, Community crime prevention activity support, Environmental improvements and Community Crime Prevention kits.

SelectaDNA kits and Bike register kits are two of the Community Prevention kits that will be distributed to residents within the local communities over coming weeks.

The SelectaDNA kits are property marking kits that include a unique formula of DNA, UV tracer and microdots, which people can use to mark their valuable household items, so that if stolen, police are able to trace them. 

Similarly, the bike register kits include stickers, frame markings and microdots to uniquely identify a bike.  Users can add descriptions and photos to ensure that in the event of a theft, their bicycle can be easily identified and returned by Police through the BikeRegister Scheme.

Dafydd Llywelyn, Police and Crime Commissioner for Dyfed-Powys said, “I am delighted that both these crime prevention kits have been purchased through the Safer Streets funding that I secured earlier this year.  Hopefully, as they are distributed over the coming weeks, we will see that they will have a positive impact within the area.  Criminals know that DNA is the police’s most powerful weapon in convicting criminals therefore the DNA fear-factor is highly understood and acts as a huge deterrent.

“I have invested significantly in the area over recent years with community grants I made available in addition to the new CCTV system that is in place across the town. These new crime prevention kits that have been purchased through the new additional Safer Streets funding will further build upon my work over recent years and I hope the residents will feel a positive difference in their communities.

Both Ty Isha and Glanymor areas are considered to be two of the most deprived areas in Carmarthenshire according to the Welsh Government’s Index of Multiple Deprivation. The funding secured will focus on tackling all acquisitive crime such as burglary, vehicle theft and robbery within the identified areas.

PCC Llywelyn added, “Ensuring the security and safety of residents is a priority of mine – everyone deserves to live safely, and free from harm. Acquisitive offences are the crimes that the public are most likely to encounter, and they are estimated to cost society billions of pounds every year. There is strong evidence that these crimes can be prevented by tactics that either remove opportunities to commit crime or act as a deterrent by increasing the chances of an offender being caught. I now look forward to continue working closely with all partners that have supported us with our bid, to tackle these crimes in both areas and to ensure that they become safer environments for community residents.”

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