VAT cuts for the tourism and hospitality sector have been welcomed in Argyll and Bute as the industry re-opens following lockdown.
The UK Government has announced temporary relief for businesses in the sector after slashing VAT on food, accommodation and attractions from 20 per cent to five per cent.
The measure, part of the government’s economic response to the Covid-19 crisis, will last until January 12, 2021 and will have a significant impact in Argyll and Bute, where tourism plays a huge role in supporting the local economy, providing 15 per cent of total employment.
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Councillor Alastair Redman, policy lead for economic growth at Argyll and Bute Council, said: “The pandemic has had a major impact on our local economy with businesses and communities struggling with the effects lockdown has had on livelihoods.
“The temporary reduction in VAT is welcome and we hope as restrictions continue to ease, our hospitality and tourism sector can start to recover.
“We have all done a fantastic job safeguarding each other since March.
“Businesses are making considerable efforts to adapt and manage customer safety moving forward and it is now time to welcome visitors back safely.
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“Argyll and Bute has some of the most spectacular scenery in Scotland and we’re lucky we don’t have to travel too far to fully appreciate what a special place it is.
“We want to encourage visitors to return safely and help support our local businesses.”
Restaurants, cafes, pubs and hotels across the country were permitted to re-open indoors from Wednesday, July 15 as lockdown restrictions continue to ease across Scotland.
Last week, Argyll and Bute Council announced that temporary outdoor sites would be made available for use by businesses throughout the region struggling to re-open under the new guidelines.
In Helensburgh, Colquhoun Square has been identified for short-term use, free of charge, by cafés, licensed premises, outdoor markets or for other uses which would support economic activity.
Businesses hoping to make use of the public realm spaces had until Tuesday, July 14 to submit applications, although the council says that further town centre sites may be identified.
Cllr Redman added: “Post Covid-19, we should support our local businesses as they have supported us during the pandemic.”
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