London Daily

Focus on the big picture.
Saturday, Sep 12, 2026

British govt’s £30bn emergency Covid-19 budget offers ‘meal deals’ & VAT cuts to get Britons spending

British govt’s £30bn emergency Covid-19 budget offers ‘meal deals’ & VAT cuts to get Britons spending

UK Chancellor Rishi Sunak has unveiled an abundance of eye-catching policies to kickstart the coronavirus-battered British economy, with money off restaurant meals and VAT slashed to encourage Britons to get back out and spend.

Announcing his summer statement in the House of Commons on Wednesday, Sunak said his £30 billion spending injection into the UK economy was needed to “protect, support and create jobs.”

The chancellor laid bare the perilous state the country is in due to the pandemic, saying that “In just two months our economy contracted by 25 percent – the same amount it grew in the previous 18 years.”



The majority of measures revealed focused on resuscitating the tourism and hospitality industries which have been left in dire straits – with revenues decimated due to lack of customers during the lockdown – and in desperate need of government intervention.


VAT slashed from 20 percent to five percent

Sunak said he wanted to see pubs, restaurants, cafes and hotels “bustling again,” so VAT on food, accommodation and attractions will be cut by 15 percent – taking effect from July 15 – and will stay in place until January 12, 2021.


“Eat out to help out” meal deal vouchers

In what is seen as a ploy to get Britons spending in their high street cafes and restaurants again, the chancellor revealed that everyone will be given an “eat out to help out” discount from Mondays to Wednesdays during the month of August. It means the price of meals will be up to 50 percent cheaper, to a maximum discount of £10 per head.


Stamp duty abolished for homes under £500,000

In an attempt to prevent the UK housing market crashing, Sunak made major changes to the stamp duty threshold, moving it temporarily from £125,000 to half a million pounds until March 31, 2021. Property transactions fell by 50 percent in May.


Employer reward

The UK government’s furlough or job retention scheme which has effectively seen nine million workers paid to stay at home during the Covid-19 crisis will come to an end on October 31.

Perhaps fearing the effects of the financial support coming to an end and possible widespread redundancies, Sunak announced that companies would be “rewarded” a £1,000 bonus for every employee they bring back from furlough and keep in a job until January 2021.

Newsletter

Related Articles

0:00
0:00
Close
Chinese Crypto Entrepreneur Leon Li Identified as Seller of £190 Million London Mansion
Trades Union Congress Proposes Social Energy Tariff Funded by Higher Bank Surcharge
British Chambers of Commerce Calls for State Pension Triple Lock to Be Scrapped
Anthropic Says Claude Helped Disrupt Biological Weapons and Cyber Espionage Threats
UK Imposes Sanctions Over Israeli Settlements and West Bank Violence
UK Reimposes Sectoral Sanctions on Iran’s Aviation, Shipping and Energy Networks
UK Economy Grows 0.4% in July as AI and Programming Services Lift Activity
UK House of Commons Rejects Assisted Dying Bill by 286 Votes to 270
UK Reviews Nationwide Emergency Alert Tests After Systems Meet Reliability Targets
UK Seeks Faster Rail Links Across Northern Industrial Corridors
British Business Bank Allocates £150 Million for High-Growth Companies in Northern England
BBC Warns Staff Strikes Are Possible Amid Pay Dispute and £500 Million Savings Drive
UK Backs Short Extension of UN Sudan Sanctions Regime
Prime Minister Andy Burnham Defends Early Prison Release Reforms and Growth Strategy
Reform UK Faces Scrutiny Over Alleged Effort to Circumvent Foreign Donation Rules
UK Analysts Warn Tax Rises or Spending Cuts May Be Needed to Preserve Fiscal Headroom
Jaguar Land Rover Plans Up to 4,000 Job Cuts in £1.7 Billion Cost-Saving Drive
UK Chancellor Warns of Difficult October Budget as Borrowing Costs Rise
UK Declares Israeli Occupation of West Bank Unlawful and Expands Sanctions
UK House of Commons Rejects Assisted Dying Bill for England and Wales
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
×