It is so odd to think it has been over a year since the last of the Scotland Food & Drink Leadership Dinners, a chance for industry leaders to catch up and discuss the key issues facing their sector, whilst celebrating all that Scotland’s food and drink produce brings to the world.
Following Rishi Sunak’s budget announcement earlier today the temporary reduced rate of 5% VAT for the Tourism and Hospitality Sectors has been extended for a further 6 months until 30th September 2021. Furthermore, an interim rate of 12.5% will be introduced for the sector from 1st October 2021 until 31st March 2022. Thereafter the standard rate of VAT will apply again.
When entering 2020 we were fully expecting the year to largely be focussed on two topics: sustainability and growth funding. To a large extent, both topics have still been highly prevalent, albeit funding often being required to strengthen cash flows rather than to pursue ambitious growth.
*Updated 29 September 2020*
*Updated 13 August 2020*
2020 has presented unprecedented challenges to the Scotland food and drink sector, however the agility, innovation and resilience demonstrated by many Scottish businesses has been one of a few positives. The effects of the pandemic and national lockdown have impacted each business differently; with some businesses being forced into a stand-still whilst others have experienced a surge in demand.