Before taking to the role, he was Chancellor of the Exchequer. The Morning Advertiser takes a look into how legislation introduced and decisions announced by Rishi Sunak has impacted pubs over the past five years.
October 2017
Sunak vowed to support pubs which he claimed to be “cornerstones of rural areas”.
2 February 2016
Sunak voted for requiring pub companies to offer pub landlords rent-only leases. He voted for a Small Business Commissioner to address disputes with larger businesses; to protect the term apprenticeship in law; to require insurers to pay insurance claims within a reasonable time; to establish a ‘Pubs Code Adjudicator’; to ensure tied pub tenants are offered a Market Rent Only option during rent assessments and for other measures intended to support the growth of enterprise in the UK.
20 March 2020
Sunak set up the Coronavirus Job Retention Scheme, under which staff were furloughed throughout the pandemic. The Government grants covered 80% of the salary of retained workers up to a total of £2,500 a month.
He also deferred the following quarter of VAT payments to help businesses keep people in work. Businesses were given to the end of the financial year to repay these bills. This was a direct injection of £30bn to employers.
In addition, he abolished business rates altogether for the 2020 to 2021 tax year for hospitality businesses including pubs and bars.
Sunak also provided cash grants of £25,000 for small business properties.
April 2020
Sunak revealed the details of the Coronavirus Large Business Interruption Loan scheme to help businesses with a turnover of more than £250m. The loan meant firms with a turnover of more than £45m could apply for up to £25m of finance, and businesses with a turnover of up to £250m could apply for up to £50m worth of finance.
The eligibility cut-off date for the Coronavirus Job Retention Scheme was also extended by almost three weeks to 19 March to ensure more staff would receive furlough payments.
October 2020
Sunak outlined additional support measures for pubs in ‘tier two’ locations. He announced pubs would be able to access a grant worth up to £2,100 for every month tier two restrictions have applied.
He also announced changes to the Job Support Scheme for businesses experiencing lower demand. Pub staff only needed to work one day a week to be eligible. After this, the Government funded 62% of wages for hours not worked, more than doubling the maximum payment to £1,541.75.
July 2020
Sunak launched the ‘Eat Out to Help Out’ scheme. Through the programme, the Government partially subsidised food and non-alcoholic drinks at restaurants and pubs across the country. In addition, he said the rate of VAT on “most tourism and hospitality-related activities” would be cut from 20% to 5%.
He also outlined a new Kickstart Scheme which would provide employers with an initial £2bn funding to create new roles for 16 to 24 year olds.
September 2020
Sunak announced a new Job Support Scheme alongside an extension of the VAT cut for hospitality. The scheme entailed employees would have to work a third of their normal hours, paid by the employer, starting on 1 November and running for six months.
November 2020
Sunak announced the furlough scheme would be extended until the end of March.
January 2021
Sunak announced one-off grants for pubs of up to £9,000 per venue. A further £593m was also made available for local authorities and the devolved administrations to support businesses not eligible for the grants that could still be impacted by Covid restrictions.
February 2021
Pubs were able to access Government grants of up to £18,000 to help them survive until restrictions were eased, said Sunak.
March 2021
In the Spring Budget, Sunak announced the UK would not return to a standard 20% VAT rate until April 2022. He stated the temporary reduction in VAT from 20% to 5% on food, soft drinks and accommodation would be extended for a further six months until September.
He also announced that rather than retuning to the 20% rate in the autumn, the Government would introduce a 12.5% interim rate for a further six months, meaning the standard rate won’t be reintroduced until April 2022.
He also revealed a £150m fund to help communities take ownership of pubs, theatres, shops and sports clubs at risk of loss.
In addition, he said announced planned duty increases on alcoholic drinks were to be cancelled. He revealed a freeze on beer, cider, wine and spirits duty for another 12 months. He also said the business rates holiday would continue for three months.
Incentives for businesses to hire apprentices were also announced, with £3,000 paid to businesses to hire apprentices at any age. The furlough scheme was also extended until the end of September.
Contactless card payments were also increased to £100 in a bid to boost consumer leisure and retail spending.
October 2021
A 50% business rates discount was put in place for the hospitality, retail and leisure sectors for one year, after the Chancellor announced it in the Autumn Budget.
Planned duty increases for alcoholic drinks at pubs were also cancelled, and a new Draught Relief scheme was set to see duty cuts of 5% introduced in 2023, he also announced.
Furthermore, he announced the introduction of Draft Relief, which would apply a new lower rate of duty on draught beer and cider, and apply to drinks served in containers more than 40l.
March 2022
Sunak revealed a temporary 50% business rates relief for eligible hospitality businesses up to £110,000, worth £1.7bn for small businesses as part of the Spring Statement.
Aug 2022
This summer, during an earlier leadership race, Sunak vowed to slash business rates if elected as the next Conservative party leader, saying this priority would be top of his mind.