Business Summary: The £30bn Summer Statement

Yesterday the Chancellor of the Exchequer Rishi Sunak pumped another £30bn into the economy as his plans to tackle the immediate economic crisis now greatly exceed last year’s total health spending.

In the summer statement Mr Sunak was confident that more would be needed to address the “profound economic challenges” that have been caused by COVID-19 and the lockdown.

Providing an expert insight on the announcement, Steven Wiseglass, director at forensic accounting and insolvency practice Inquesta, said: “The Chancellor clearly wants to see the recovery of the economy and get the country back to ‘normal’.

“From an insolvency point of view, I expect the hospitality sector to be hit the hardest of all by the pandemic, and the measures announced may soften the blow to the industry and be the helping hand that is required.

“The Chancellor has specifically targeted it for a boost. Going into the summer and with restrictions on travelling abroad still in place, staycations are likely to see a huge increase this year.

“I hope businesses and attractions will pass on the reduction in VAT to five per cent to consumers, rather than seeing it as a natural price increase.

“The measure goes hand-in-hand with the ‘eat out to help out’ discount scheme, which will certainly be a boost to consumers and a fillip for the restaurant sector.

“However, if the intention is for restaurants to get back to normal capacity, I do wonder just how people are able to socially distance effectively while enjoying their meal.”

“We must hope and pray that there is no second wave, otherwise it will all be in vain.”

If you would like to discuss how the summer statement can impact your business recovery please contact us on 0800 093 4270 or find us at https://www.ukinsolvencyspecialists.co.uk/

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