Summer Statement 2020.
Commenting on the Chancellor’s Summer Statement, Will Hawkley, UK head of leisure at KPMG, said:
“The Chancellor’s focus on the leisure and hospitality sector is most welcome, with our nation’s pubs, restaurant and cafes still scrambling to find their feet in the wake of their prolonged closure. It was right that this update majored on the creation and preservation of jobs, especially given how significant a role the hospitality sector plays in the health of our economy and how big an employer it is.
“VAT relief – down from 20% to 5% until next January - will provide businesses with some more financial manoeuvrability where their expenses and sales prices are concerned. Having said that, it can’t make up for the loss of sales and stock they incurred during lockdown as well as the backlog of rent payments which is still a major issue for the sector.
“As the Summer Statement addressed, many leisure businesses are having a hard time getting their customers back into the swing of things, with concerns over finances and safety. In fact, our recent analysis* found that over 47% of respondents felt worse off financially since COVID-19, 81% said they have limited their spending, and personal safety was identified as one of the key factors influencing trust in brands currently.
“The Chancellor’s ‘eat out to help out’ initiative certainly shows some creativity and will help those it’s intended for, but the travel and tourism sector still finds itself in an incredibly vulnerable position.”
*KPMG’s report ‘Customer Connections: Competing in the New Reality’ can be accessed: here
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