Hotels in Bristol have welcomed the temporary cut in VAT for the hospitality sector in the summer economic statement – and are delighted that it was lower than they expected.
The Bristol Hoteliers Association (BHA), which represents 40 major hotels in the city, has been calling on the government to cut VAT in the sector from 20% to 15% for some time. 
But Chancellor Rishi Sunak surprised the association by announcing a temporary reduction for tourism and hospitality-related activities from 20% to 5% until next January.
Other measures – including £1,000 for each furloughed employee that a business brings back and retains until January and discounts for eating out in August – were also greeted by the BHA
Some of Bristol’s hotels re-opened on July 4, the date the government lifted some lockdown restrictions applying to the industry, while others are finalising arrangements to ensure they are Covid-19 safe before re-opening in the coming weeks.
BHA chair Raphael Herzog, pictured, said: “The measures outlined in the Chancellor’s speech were very welcome. We had very much hoped for a VAT cut but did not expect it to be dropped so low.
“We are looking forward to seeing more details about the eat-out incentives that the Chancellor announced.
“The scheme which provides a £1,000 bonus job retention bonus to businesses who are bringing people out of furlough will also be a significant boost to our members.
“Overall, we felt that the measures announced by the Chancellor were positive.”
He said many people – those who were confined to their homes during lockdown as well as others who worked flat-out during the crisis – would feel that they wanted, needed and deserved a break.
“We are all working hard to ensure that our hotels are as safe as possible and look forward to welcoming people back,” he said.
“We hope people have the confidence now to come and enjoy some well-deserved staycations at our hotels.”
BHA members operate around 4,000 hotel bedrooms in the city and contribute an estimated £200m to the local economy.
