UK Launches Discount Scheme To Boost Spending At Food And Drinks Venues

By Dave Simpson
UK Launches Discount Scheme To Boost Spending At Food And Drinks Venues

Britain has launched a $625 million "eat out to help out" discount scheme to boost spending at restaurants, cafés and pubs that have been crippled by COVID-19, offering half-priced meals from Monday to Wednesday to get people spending again.

For the month of August, the scheme will entitle diners to a 50% discount of up to £10 per head on their meal, finance minister Rishi Sunak said.

"This moment is unique. We need to be creative," he told parliament during a statement on the outlook for the economy.

The discount can be used unlimited times in August and will be valid Monday to Wednesday in a bid to encourage people to dine out throughout the week and not just at the weekend.

It will not apply to alcohol.


Britain's foodservice industry, which employed 1.8 million people before the crisis, has suffered thousands of job cuts, with layoffs announced by firms including the owners of the Upper Crust and Café Rouge chains.

Sunak also announced a temporary cut in VAT sales tax from 20% to 5% for eat-in or hot takeaway food from restaurants, cafes and pubs.

Kate Nicholls, chief executive of industry lobby group UK Hospitality, welcomed the announcements.

"The measures announced today are extremely positive...and they should give many businesses in our sector much-needed help to get going again in earnest," she said.

Left Out

But businesses in other parts of the economy said that they have been left out.


"It feels like manufacturing has been reliefs for innovation, encouragement for consumer spending, industry stimulus packages, where are they?" asked Rowan Crozier, chief executive officer of Brandauer, a pressing and stamping company.

The Society of Motor Manufacturers and Traders said it was "bitterly disappointing" that Sunak stopped short of supporting the auto sector.

"Of Europe's five biggest economies, Britain now stands alone in failing to provide any dedicated support for its automotive industry, a situation that will only deter future investment," SMMT chief executive Mike Hawes said.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.