RESTAURANTS in Whitchurch are set to embrace government backed VAT cuts.

In his summer statement, Chancellor Rishi Sunak announced that restaurants would receive a six-month cut in VAT from today (Wednesday, July 15), bringing percentage down to five per cent from 20 per cent.

This cut will apply to qualifying restaurants until Janurary 12.

The VAT cut will cover food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food.

The Government has also launched a reward scheme

The ‘eat out to help out’ scheme will run throughout August, offering a 50 per cent discount for dining out, up to £10 per head.

This again covers food and non-alcoholic drinks but only affects participating restaurants.

Stuart Collins of Docket 33 in High Street says he is in favour of the VAT offers, and is delighted to see the Government stepping in to assist businesses such as his following the easing of lockdown restrictions.

“It’s great to see the Government offering support to the hospitality industry,” said Stuart.

“As one of the biggest industries in the UK, we need to ensure the longevity of the businesses and the employment of more than three million people that work within it.”

Stuart also says he approves of the Government’s 50 per cent off scheme, saying that both it and the VAT cut are both examples of the Government doing their bit to get businesses back on track, alongside businesses themselves implementing Covid-19 measures.

He added: “Both the reduction in VAT and the ‘eat out to help out’ scheme are proactive steps that will help towards ensuring the longevity of people’s employment while restaurants, bars and cafes are complying to the Covid-19 safer operating practices.”

Joanna Murru, owner of Etzio in High Street, has also backed the government’s VAT cuts, but expressed concerns over the long-term viability, specifically where the VAT shortfall will be made up.

“It’s obviously very good,” said Joanna. “We’re not going to disagree with cuts.

“The Government is going to have to fund the money somehow though.

“But it will help us in the long run, it will help replace a few lost tables.”

Joanna was also less sure about the 50 per cent off idea though, questioning the practicality of the scheme.

Those applying for the scheme can claim the money back, but Joanna was concerned about the extra workload it would place on her staff.

The scheme is currently opt-in for restaurants, with participating restaurants able to reclaim the difference every week throughout August.