Chancellor Rishi Sunak has today announced a new discount scheme to encourage people to revisit restaurants, cafes and pubs.
The 'Eat Out to Help Out' scheme, a UK first, will see participating businesses offering a 50% discount to customers on dine-in meals.
The discount can be used unlimited times throughout August, and businesses will then be able to claim the money back from the government.
In today's 'mini budget' he also announced a reduction in VAT from 20% to 5% for food, accommodation and attractions, until January 12, 2021.
Mr Sunak described the moment as 'unique', and said the government hopes to protect the 1.8 million people working in bars and restaurants.
The Eat Out to Help Out scheme is redeemable on food and non-alcoholic drinks only, up to a maximum discount of £10 per head.
Speaking to the Commons today, Mr Sunak said: "I can announce today that, for the month of August, we will give everyone in the country an ‘Eat Out to Help Out’ discount.
"Meals eaten at any participating business, Monday to Wednesday, will be 50% off, up to a maximum discount of £10 per head for everyone, including children.
"Businesses will need to register, and can do so through a simple website, open next Monday.
"Each week in August, businesses can then claim the money back, with the funds in their bank account within five working days."
The reduced VAT rate will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK, from July 15 until January 12, 2021.
The reduced rate will also apply to accommodation bookings and admission to attractions across the UK.
HMRC will publish further guidance on the scope of the relief for both sectors in the coming days.
The Chancellor added: "Our economy relies on consumption, especially social consumption.
"The pubs, cafes, restaurants, hotels and B&Bs that bring life to our villages, towns and cities."
Speaking of the VAT reduction, he said: "This is a £4 billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs."
Night time economy adviser for Greater Manchester, Sacha Lord, said: "The Hospitality sector will very much welcome the VAT cut from 20% to 5% until the 1st January. It will make a huge difference.
"Also, 50% discount on restaurant/pub meals on a Monday-Wednesday during August, at a max of £10 per head is very much welcomed.
"We must still remember the virus is still around though and all guidelines are remembered."
