Restaurants in the district had a mixed response to the Chancellor’s announcements today to help the hospitality sector. One restaurant owner said she was “very pleased” but others were cautious.
Rishi Sunak’s announcements included a 6 month reduction in VAT to 5%. The ‘eat out to help out’ scheme was also introduced to give diners a 50% discount on Monday and Wednesday in participating restaurants and cafes.
Restaurants were grateful for the additional help but wanted to see how the measures would be introduced. These announcements are hoped to encourage people to return to eating out.
Sarah Hinchliff, owner of Drum and Monkey restaurant in Harrogate said:
“I am very pleased with what has been announced. It’s increased my confidence. We are still going to be here but it’s been difficult, anything that helps to bring people back in is great. It’s been a difficult week but it’s bolstered how I am feeling it just going to take time for people to return. It will help us immensely.”
Nicole Mangan, general manager at Farmhouse restaurant Harrogate:
“The devil is in the detail, the reduction in VAT is fantastic. We expected that as a way to help businesses stay open. The discount is great but we’re closed Monday and Tuesday normally so it may be something we look at to see if we open. It could really help us on quieter days, £20 is essentially a main and dessert which could encourage people to come to us if they know they can get all of that for £10. We need to see more details before we get our hopes up I think.”
The Chancellor’s announcements are in an effort to encourage people to return to eating out.
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Margaret Ninness, owner of The Willow Restaurant in Pateley Bridge:
“I’ve recently changed my business to make it smaller so I no longer pay VAT, but for those still registered this would be fantastic. The ‘eat in’ scheme would be fine for me but if you’re waiting to get the money back with a tight budget it could be difficult. But I do think they’re doing their best and they are helping everyone.”
Harrogate was busy over the weekend as restaurants and pubs reopened for the first time in three months. Sandra Doherty, Chief Executive of Harrogate District Chamber of Commerce, said:
Top Harrogate hotelier hopes VAT cut will generate demand“The Chancellor’s statement will be welcomed by many businesses in Harrogate, in particular those in the hospitality sector. Whilst the cut in VAT for food, accommodation and attractions, coupled with the ‘Eat Out to Help Out’ scheme are only temporary, I’m sure they will make it more attractive for businesses in the hospitality sector to reopen their doors.”
A top Harrogate hotelier has said he hopes that a cut in VAT for the sector and a discount on sit down meals will help to generate demand.
Chancellor Rishi Sunak announced today that VAT for the sector will be cut by 15% for six months and a 50% discount for sit down meals from Monday to Wednesday for the whole of August.
The sector is worth a reported £200 million to Harrogate and employs around 9,500 people across the district.
Peter Banks, managing director of Rudding Park Hotel and Spa and chairman of Harrogate Hospitality and Tourism Association, said the measures were good news for the sector which has bore the brunt of lockdown.
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He said:
“It’s great news if it generates demand for us.
“The discount was very creative and I’m going to have to get my head around the announcement and come up with marketing strategies.
“So far the response has been very good to reopening our pub.”
The move comes as restaurants, bars and cafes reopened across the Harrogate District this past weekend after three months of lockdown.
The measures by Mr Sunak are the latest effort to get the sector, which saw 80% of businesses across the UK temporarily stop trading during lockdown, back up and running.
Local authorities in the Harrogate District have already moved to create more space outside bars and restaurants to increase capacity.
But industry owners have already warned that businesses will have to take advantage of the remaining summer months in order to survive a “tough winter” period.
Harrogate Borough Council leader, Richard Cooper, warned earlier this week that some businesses will not survive the impending economic downturn.