Budget 2021: London business leaders welcome vacation extension
Ondon’s hospitality and leisure leaders have welcomed the Chancellor’s expansion of today’s landmark vacation program, saying it will help stem the tide of closings caused by the pandemic.
The vacation program will be extended until the end of September, although the government’s contribution will be reduced from July onwards. The move is designed to protect millions of jobs. Employers are asked to pay 10% in July and 20% in August and September for employees’ working hours.
Rob Pitcher, executive director of Revolution Bars, said the expansion of the vacation program is an “important ingredient in helping the hospitality industry move on from the threshold”.
Paul Simbler, co-founder of the London hairdressing chain Hob Salons, said: “This allows us to get people back to work at a pace that the company can afford. It also allows the flexibility to bring employees back part-time to start in different areas of the company as needed. ”
David Moore, owner of the Pied à Terre restaurant in Fitzrovia, said: “The extension of the holiday … is very welcome and seems to be the right amount of time right now.”
Rik Campbell, co-owner of Soho’s cricket, said, “We expected the vacation to be extended, but maybe not until September. That’s great, but of course we want to get our employees back to work first. Hopefully consumer demand means we will all have vacation by the end of May. ”
Chancellor Rishi Sunak also announced an extension of the VAT relief and the vacation with the business tariffs.
The relief on business tariffs will be extended to July – with a 66% discount from July to December – and VAT will also be extended to 5%.