Hoteliers in Bristol have welcomed a temporary cut in VAT for the hospitality sector, saying it’s lower than they expected.

The Bristol Hoteliers Association has, for some time, been calling on the Government to cut VAT in this sector from 20% to 15%.

But Chancellor Rishi Sunak today announced a temporary cut on VAT applied to tourism and hospitality related activities from 20% to 5% until January 2021.

Hoteliers in Bristol have welcomed this temporary boost to help get their businesses back up and running as COVID-19 lockdown restrictions continue to be lifted.

Raphael Herzog, Chair of the Bristol Hoteliers Association, said: “The measures outlined in the Chancellor’s speech today were very welcome.

“We had very much hoped for a VAT-cut but did not expect it to be dropped so low.

“We are looking forward to seeing more details about the eat-out incentives that the Chancellor announced.

“The scheme which provides a £1,000 bonus job retention bonus to businesses who are bringing people out of furlough will also be a significant boost to our members.

“Overall, we felt that the measures announced by the Chancellor today were positive and are welcomed by the BHA.”

Some of Bristol’s hotels re-opened on 4 July, as they were allowed to, while others are finalising arrangements to ensure they are COVD-19 safe before re-opening in the coming weeks.

Mr Herzog added: “Many, many, people – those who have been confined to their homes for many weeks as well as others who have been working flat-out during the crisis – will feel that they want, need and deserve a break.

“We are all working hard to ensure that our hotels are as safe as possible and look forward to welcoming people back.

“We hope people have the confidence now to come and enjoy some well-deserved staycations at our hotels.”

The Bristol Hoteliers Association represents 40 major hotels in the city, with around 4,000 rooms. Hotels put an estimated £200 million into the local economy.