Portsmouth restaurants and pubs welcome 'life-saving' coronavirus cash from chancellor

Businesses from across the Portsmouth area have welcomed the emergency cash injection announced by chancellor Rishi Sunak on Wednesday.

The huge financial splurge saw Mr Sunak committing to a £9bn job retention bonus for employers.

The scheme would see the government paying a £1,000 bonus to firms for each furloughed person brought back and employed through to January, supporting more than 22,000 people in Portsmouth alone.

In a boom for the leisure and hospitality sector, a temporary six-month VAT cut will be implemented from Wednesday, slashing rates from 20 per cent to five on food, accommodation and attractions.

And in an unprecedented move, Mr Sunak revealed everyone would get 50 per cent off meals in participating restaurants and eateries throughout August, as part of chancellor’s ‘eat out to help out’ scheme.

The initiative, which will run Monday to Wednesday, will see the government stumping up to £10 per head, for adults and children, on meals and has been celebrated by restaurants and pubs chains locally.

Faz Ahmed, owner of The Akash Indian restaurant in Albert Road, Southsea, said the new measures would bring desperate relief to businesses across the country.

‘This is going to be a lifeline for so many businesses,’ he told The News. ‘We have seen so many restaurants go under. I know a lot of people are on the edge now.

‘When we opened on Saturday, we expected it to be crazy and busy. But it wasn’t. We have got a 50 per cent reduction on our tables and we couldn’t even fill half of that.

SEE ALSO: Tough times still lie ahead for Portsmouth despite cash injection

‘People have lost confidence to come out. Hopefully this will really help to change that.’

Mel Taylor, who runs the Crofton Pub in Stubbington, said it was critical public confidence was restored and urged people to trust in their pubs and restaurants to keep them safe.

Welcoming the chancellor’s cash push, she added: ‘We couldn’t survive without this. This is amazing.’

Farid Yeganeh, managing director at the Queens Hotel, Southsea, also threw his weight behind Mr Sunak’s plan.

He said: ‘Anything that supports the hospitality industry as we come out of the lockdown is to be welcomed and it does seem the chancellor has listened to our concerns.

‘While the VAT cut and job retention bonus are to be welcomed, I think the “eat out to help out” discount will capture the public’s imagination.

‘They will understand that by eating in local hotels and restaurants in August, they can help to save local jobs and strengthen our local economy.’

Jemma Stewart, owner of Truffles restaurant in Fareham, also backed the new meals discount scheme, and said it could revive businesses financially crippled by the coronavirus crisis.

‘It is a good idea and while it may not get everyone dining out it may certainly push a few more people to do so,’ she added. ‘There is no doubt customer confidence needs to be rebuilt as after three months some people will be scared to go to places where there may be a lot of people.’

Addressing MPs, Mr Sunak said his plan would help protect livelihoods after the economy contracted by 25 per cent in just two months.

He said: ‘We have taken decisive action to protect our economy.

‘But people are anxious about losing their jobs, about unemployment rising. We're not just going to accept this.

‘People need to know we will do all we can to give everyone the opportunity of good and secure work.

‘People need to know that although hardship lies ahead, no-one will be left without hope.’