Eat Out to Help Out boosts treasury coffers by £250m

Official figures announced last week revealed a total of 10m claims were received under the scheme, equating to a cost of £522m for the Government, with further claims still to be made.

The scheme directly contributed £250m in additional revenue for the Treasury, as well as boosting consumer confidence.

It also enabled 200,000 staff in the pub and hospitality sector to come out of furlough early to facilitate the increase in trade generated by the initiative, which saved the government almost £150m in furlough costs.

VAT generated on additional food and soft drink sales from the Scheme generated £30m for the Treasury and additional sales of alcoholic drinks that accompanied the meals was estimated to have boosted duty and VAT revenues by a further £65m.

The British Beer & Pub Association, UK Hospitality and British Institute of Innkeeping all called for further support for the sector as it approaches winter.

“Eat Out to Help Out was a shot in the arm for consumer confidence in eating and drinking out of home, right across the country. It gave our businesses the opportunity to showcase the investment they had made to keep customers safe while also making them feel welcome,” says UKHospitality chief executive Kate Nicholls.

“As we approach Winter we need to ensure the right support in place to stimulate a more sustained demand. A significant starting point would be to extend the VAT cut, ensuring the business rates holiday is continued next year and getting more of the UK economy back on its feet, including those businesses that remain closed.”