News
Chancellor’s economic update includes VAT cut for hospitality sector, and customer discounts
THE CHANCELLOR, Rishi Sunak, set out the measures in his summer economic update in the House of Commons on Wednesday (Jun 8), as he faces pressure to assist those who are most vulnerable to the financial crisis.
The Chancellor said he will cut VAT from 20% to 5% for food if people eat out to help those businesses which he said had been hardest hit by the coronavirus pandemic.
The chancellor announced discount to encourage people to eat out in August.
He says restaurants, pubs, bars and hotels as well as other attractions will be able to claim the money back within five days. It had been reported he was considering giving all UK adults a £500 voucher to spent with companies hit by coronavirus, but the Chancellor has decided not to go ahead with that proposal.
Another announcement is that employers who take back staff on furlough and continuously employ them until January will get £1,000 cash bonus per employee.
Instead Sunak announced a discount worth up to £10 per head for eating out in August. He said his final measure has never been tried in this country. It is an “eat out to help out scheme”, offering customers as discount worth up to £10 per head when they eat out from Monday to Wednesday in August.
Speaking in the Commons today, he said: “Our plan has clear goals, to protect, support and retain jobs.”
Regards furlough scheme, he said it must wind down, adding: “flexibly and gradually supporting people through to October” but that he is introducing a bonus for employers who bring staff back from furlough.
Employers who bring someone back from furlough and employ them through to January, paying them a minimum of £520 a month, will receive a £1,000 bonus.
He says that “in total we have provided £49bn to support public services since the pandemic began”.
He added: “No nationalist can ignore that this help has only been possible because we are a United Kingdom.”
Mr Sunak says the UK economy has already shrunk by 25% – the same amount it grew in the previous 18 years.
He also announced:
- A £2bn kickstart scheme paying employers to take on unemployed 16 to 24 year olds for a minimum of 25 hours a week – he says the Treasury will pay those wages for six months plus a sum for overheads. He says there is no cap. This will apply in England and Wales.
- VAT on food from restaurants, cafes, pubs and hotels will be cut until January 12 from 20% to 5%
- Funding for apprenticeships and trainee-ships in England, there will be a separate announcement for Wales.
- £1bn for the DWP to support millions of people back to work through Job Centres
- A £2bn green homes grant in England to cover two thirds of the cost, up to £5,000, for energy efficient home improvements. Again the Welsh Government will have their own proposals on this given time.
- A temporary cut to stamp duty in England and Northern Ireland.
Stephen Crabb has given his strong backing to the Chancellor’s coronavirus recovery plan, calling it “a huge step towards getting Pembrokeshire back on its feet”.
The Preseli MP said that the Chancellor’s ‘Plan for Jobs’ includes a £1000 bonus for businesses to bring back furloughed staff and the Kickstart scheme which will provide high quality work placements for unemployed youngsters. In England businesses will also be offered £1000 bonus to take on a trainee and £2000 for each new apprentice. Welsh Government has been given equivalent money to support their training schemes.
Speaking in the House of Commons following the Chancellor’s statement, Crabb said: “Make no mistake, this action to save a generation of young people from bearing the brunt of the economic crisis is incredibly positive and to be welcomed.”
The MP has previously warned about the prospect of a surge in unemployment as a result of the lockdown.
The Chancellor also announced a cut in VAT for the tourism and hospitality sector, giving a much needed boost to some of the sectors hardest hit by coronavirus. Early on in the lockdown, Crabb wrote to the Chancellor to call for a package of support for Tourism that included a VAT cut.
Responding to the announcement today, he said: “I am delighted that the Chancellor has listened to the proposals that many MPs from coastal areas have put forward. Tourism and hospitality need a real shot in the arm and the VAT cut will be very welcome.”
Today’s statement also saw the launch of a new ‘Eat Out to Help Out’ scheme, giving people 50% off meals out to encourage more families to eat out or get a takeaway during the month of August. These measures will be important for Pembrokeshire’s many hospitality businesses who are still awaiting an announcement from Welsh Government on when they can open again.
On Friday Stephen Crabb will be bringing together more than thirty local pubs and restaurants for an online discussion with the County Council and others about how the sector can re-open safely and successfully.
News
Major traffic jams following accident on M4 near Swansea
A ROAD traffic accident has closed the M4 in both directions as of Tuesday morning (Mar 19).
Police, paramedics and the fire service were called to the scene of the crash on the eastbound carriageway between Pont Abraham and Hendy at 23:20 GMT on Monday.
A fire which had broken out was extinguished before they arrived.
The motorway remains closed in both directions between J48 and J49.
The affected section is between junction 49 Pont Abraham and junction 48 Hendy, Llanelli, in Carmarthenshire.
As of 8.30am there were 45-minute delays with Traffic Wales saying: “Road continues to remain closed.
https://x.com/DyfedPowys/status/1769963608048378117
“Busy in the area delays showing as approximately 45 minutes in the surrounding areas. Please allow additional time for travel and thank you for your patience.”
Traffic monitors are showing there is already slow traffic in the area and congestion.
There are delays on surrounding routes in the area and on the A48.
News
Dredging work set for Tenby Harbour
TENBY HARBOUR and North Beach users are being asked to be aware of heavy moving machinery from Tuesday March 26 th to Friday 29 th as dredging work is carried out.
Sand will removed from the mouth of the Harbour and deposited at the north end of the beach. The work will not affect vessel movements at the Harbour.
Tenby Harbourmaster Chris Salisbury said a licence for the dredging had been issued after several months of application work.
“We ask that the public please keep clear of the operating area and that dogs are kept on a lead during this time,” Chris added.
Cllr Rhys Sinnett, Cabinet Member for Residents’ Services, said: “I’m grateful to our officers for securing the licence for this work to go ahead. This dredging is essential
for the operation of Tenby Harbour.
“The timing of the work has been governed by the tide and the dates represented the last opportunity for the work to be carried out before the boats are placed back in the
water.”
News
Closure of Tata Steel’s coke ovens sparks political and union backlash
THE recent announcement by Tata Steel to close the coke ovens at its Port Talbot plant in South Wales has ignited a firestorm of political and industrial action, highlighting the deepening crisis within the British steel industry and the challenges facing the transition to green steel.
Jo Stevens MP, the Shadow Welsh Secretary, expressed her concerns over the impact of the closure on the Welsh steel industry and the workers affected. Stevens emphasized the need for assurances about the workers’ immediate future and pledged that a UK Labour government would invest in the steel industry to support the transition to green steel, harnessing the skills, talent, and ambition of Welsh steelworkers.
The closure, slated for Wednesday due to concerns over the ovens’ “operational stability,” has been criticized by regional Senedd Members for South Wales West, Tom Giffard MS, and Dr. Altaf Hussain MS. They accused the Labour Welsh Government of neglecting its support for the Tata Steelworks in Port Talbot, highlighting a lack of financial assistance since 2019 and calling for a change in response to the current developments.
Unite, the UK’s leading union, has been vocal in its opposition to Tata’s decision, describing it as a shock and a “result of years of betrayal.” The union criticized Tata for not disclosing the imminent risk of closure during recent consultations and announced a ballot for industrial action among 1,500 Tata workers. Unite insists there should be no job losses at Port Talbot or Llanwern and that a blast furnace should remain operational.
Peter Hughes, Unite’s regional secretary for Wales, called for Tata to halt its closure plans in anticipation of Labour’s promised £3 billion investment to rejuvenate the UK steel industry. He accused Tata of managing the decline of UK steel while accepting government subsidies, describing the company’s actions as “deliberate industrial vandalism.”
The closure has not only raised concerns about the future of steel production in the UK but also spotlighted the political and economic strategies required to ensure the industry’s survival and transition towards more sustainable practices. The unfolding situation underscores the need for a collaborative approach between the government, industry stakeholders, and the workforce to navigate the complex challenges ahead.
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