Scarborough Borough Councillor Welcomes VAT Cut Extension
A Scarborough Borough Councillor has welcomed the extension to the 15% VAT cut for those in the hospitality and tourism sectors.
There are more plans to protect jobs and support businesses in the Borough of Scarborough.
It comes after Chancellor Rishi Sunak outlined earlier this week a number of schemes to help people through the winter.
The 15 percent VAT cut for hospitality and tourism sectors has been extended until March.
Janet Jefferson, Cabinet Member for Corporate Resources at Scarborough Borough Council, said:
"I think it's very, very helpful to this industry because of course whatever profit you make, less expenses, is susceptible to 20% VAT.
"So you're talking about a sixth really of your turnover excluding your VAT payments. So it's going to help people tremendously.
"Coronavirus has had a bearing on everything hasn't it? But also, we're coming into now sort of the quieter part of the season; but most areas such as Scarborough, we are promoting a 12-month season, so this will help with the hospitality industry especially.
"It'll also help within our retail sector because don't forget, we've got Christmas coming up. So although the retail sector hasn't been granted this 5% VAT, it is going to help the steps that have been taken.
"We will help wherever we can to promote jobs, albeit on a part-time basis, if we can keep jobs going so everybody has got a job and the government will pay 22.5% towards the difference.
"It's not the same as the furlough scheme, but I think it's going to help.
"I think it's difficult times for everyone and every business is having to adapt to do things.
"I think hospitality have worked very, very hard within this town and this borough to cope with the limitations, whether you're a restaurant or a pub."