Authors

Richard Bursby

Partner

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Elisabeth Heide

Senior associate

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Jack Wain

Associate

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Authors

Richard Bursby

Partner

Read More

Elisabeth Heide

Senior associate

Read More

Jack Wain

Associate

Read More

4 March 2021

Hospitality in the News

  • Quick read

Your latest instalment of articles and opinions from across the hospitality sector.

Thinking differently

The much anticipated UK Budget was announced yesterday and, from a hospitality sector perspective, it was pretty positive but with a sting in the tail. We were pleased to see the UK Government is continuing to support the sector by maintaining a reduced 5% rate of VAT for hospitality until September 2021, when an interim rate of 12.5% will apply until March 2022 and after which the standard 20% rate will apply again. There was further good news as the Chancellor announced that the business rates holiday in England will continue until June 2021 with a discount to two thirds of the normal rate for 6 months after that. Hospitality businesses can also apply for a "Restart" grant of up to £18,000 to help them get going again now that restrictions are easing. However, the not so good news was that the Budget included an increase in the corporation tax rate to 25% from 2023 (though with a £25bn “super deduction” two-year tax break which would allow companies to deduct 130 per cent of their investment from taxable income). Finally, the Chancellor signalled the bulk of the bill for COVID-19 is yet to come – it was very much spend now, tax now and (even more) later. 

Did you know?

Construction will begin in 2025 on the first space hotel...

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Latest news

Luxury hotel group Rosewood eyes $400m listing
(City A.M.)

Airbnb's first financial reports since IPO
(Hotel News Resource)

PPHE reports more than £250m drop in revenue
(The Caterer)

Accor's suffers $2.4 billion loss in 2020
(Skift)

London short-term rentals start year with higher occupancy, lower rates
(Hotel News Resource)

Hospitality leaders call for freeze on expiration of apprenticeship levy funding
(The Caterer)

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