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Chancellor’s economic update includes VAT cut for hospitality sector, and customer discounts

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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.

 

Community

Officials announced for 2026 Eisteddfod in Pembrokeshire

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THE NATIONAL EISTEDDFOD returns to Pembrokeshire in 2026, and organisers have named the officials who will steer this major cultural event over the next year and a half.

With the artistic and local committees already established, meetings to finalise competitions and adjudicators are underway to ensure the List of Competitions is ready by spring. Committee members have also been voting over the past weeks to elect key officials for the Executive Committee.

John Davies, former leader of Pembrokeshire County Council, has been appointed Chair of the Executive Committee. Known for his deep connection to Pembrokeshire and extensive experience with national organisations, Davies aims to make the Eisteddfod a true community event, welcoming involvement from all corners of the region.

Tegryn Jones, Chief Executive of Pembrokeshire Coast National Park, takes on the role of Deputy Chair (Strategy). With a strong passion for Welsh culture and language, Jones brings a wealth of experience working with local communities, visitors, and volunteers across three counties.

Deputy Chair (Culture) is Carys Ifan, Director of Canolfan Egin and a seasoned cultural organiser. Based in Llangrannog and originally from Llandudoch, Ifan has led numerous artistic and community projects across the region.

Cris Tomos, a community development veteran with over 30 years of experience, will lead the 2026 Eisteddfod Local Fund. Working with PLANED, a community development charity, Tomos has supported countless community enterprises and co-operatives in Pembrokeshire, Ceredigion, and Carmarthenshire.

Non Davies, recently elected as Executive Committee Secretary, brings extensive cultural management expertise as Ceredigion County Council’s Corporate Manager for Culture. Having chaired the Cardigan Local Fund Committee for the 2022 Ceredigion Eisteddfod, Davies is well-versed in managing cultural projects.

National Eisteddfod Chief Executive, Betsan Moses, said: “We’re looking forward to working with John and the team over the next few months as we prepare for the 2026 Eisteddfod.

“There’s almost a quarter of a century since the Eisteddfod was last held in Pembrokeshire, and we’re very much looking forward to returning to the area. 2026 is an important year for us as we celebrate 850 years since the first Eisteddfod was held in Cardigan Castle in 1176.

“We’re looking forward to working in a new way within a catchment area which includes parts of another two counties, which is, of course, a chance to work with local people in Ceredigion and Carmarthenshire again.”

Further announcements are expected in the coming weeks, including the sale of competition prizes and opportunities to donate the Crown and the Chair.

The National Eisteddfod will be held in Llantood from August 1–8, 2026.

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Campaigners urge Welsh Government to adopt proportional representation for Local Elections

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CAMPAIGNERS are calling on the Welsh Government to introduce the Single Transferable Vote (STV) system for local elections, following moves by two councils to shift away from the First Past the Post (FPTP) system being blocked on technical grounds.

Yesterday (Nov 14), Ceredigion Council voted narrowly, with an 18 to 17 majority, in favor of adopting STV. This follows Gwynedd Council’s decision last month, where 65% of councillors backed the move. However, both councils have been prevented from implementing STV due to a requirement for a two-thirds majority under the Local Government and Elections (Wales) Act 2021.

In recent consultations, public support for STV has been overwhelming, with over 70% in Gwynedd and 67% in Ceredigion favoring the change. Only Powys Council rejected the proposal, despite 60.5% of its respondents supporting STV. Campaigners argue that the current system deprives voters of representation, citing that over 100,000 people were denied a vote in the 2022 elections due to uncontested seats.

The Electoral Reform Society Cymru (ERS Cymru) highlights the contrast with Scotland, where the introduction of STV for local elections in 2007 has significantly reduced uncontested seats. According to ERS Cymru, Scotland has had fewer uncontested seats in the last four elections combined than Gwynedd Council recorded alone in 2022.

Jess Blair, Director of ERS Cymru, said:

“Decisions made in council chambers affect everyone in those areas, so every vote should count. It’s absurd that councils choosing STV are blocked by a technicality, leaving them stuck with an outdated system that denies representation to thousands. The Welsh Government must act to avoid repeating the undemocratic outcomes of the last elections.”

Campaigners are now calling on the Welsh Government to introduce STV across all councils in Wales, ensuring representation that reflects the electorate’s wishes.

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Business

Upgrades completed at Port of Milford Haven’s simulator suite

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UPGRADES have been completed to state-of-the-art equipment within the Port of Milford Haven’s navigation simulator suite at Milford Waterfront enabling marine professionals to receive bespoke specialist training. The virtual reality simulation system can safely replicate a range of scenarios that seafarers may experience in real world situations such as extreme weather conditions, emergency situations and escort tug work.


The upgrades provided by Netherlands-based company MARIN contain the latest hardware in terms of processing power and graphics, as well as upgrades to MARIN’s ‘Dolphin’ software, increasing the capability to create scenarios. These are complemented with new 4k visuals on 75” screens which increase the depth and field of vision, adding to the realism.

Recently, a training day was led by Training Pilot Captain Mark Johnson, assisted by ex-Pilot Andy Hillier, involving members of the Svitzer team as well as Pilots Matt Roberts and Ian Coombes. As part of the scenario, they were faced with a loss of engine power and steering along with worsening weather and sea conditions. The Pilots had to communicate with Svitzer in order to successfully instruct them on how to tow and direct a drifting tanker. While scenarios like these are uncommon within port operations, it is important to rehearse procedures that would be implemented if they are required and enhances participants’ skill sets.

Marine Pilot and Simulator Instructor, Captain Ewan McNicoll, said “This simulator suite has future proofed our training capabilities, both internally for Pilots and marine staff, but also externally for clients wishing to use the facility, be it for training purposes or research and development. We can create any type of scenario with any type of ship, ranging from practicing ship handling manoeuvres to emergency situations, it really is game changing! Working with our partners at MARIN has been a complete success and I am very proud of our new facility.”

For more information about training at the navigation simulation suite please contact the Port of Milford Haven at [email protected] or 01646 696100.

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