Thursday August 6, 2020

Disappointing stimulus leaves hospitality SMEs out in the cold

Lack of Vat relief, pricey loans and a staycation subsidy will not help firms for whom trading is down by up to 90 per cent

26th July, 2020
Lorraine Sweeney: ‘The business loans in the package are described as low interest, but 4 or 5 per cent doesn’t look like low interest to me.’ Picture: Fergal Phillips

My initial thoughts are that the July stimulus package is disappointing. I find myself relating to something Mary Lou McDonald said: that the measures are miserly, cumbersome and clumsy.

In the hotel and tourism sector we expected that the Vat rate would drop dramatically. Britain dropped its rate to 5 per cent, and the fact that our government didn’t reduce the Vat for the hospitality sector is going to cause carnage.

The staycation subsidy...

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