Recommendation 3

The Chancellor was right to begin stimulating consumption at the time of the Chancellor’s Plan for Jobs, especially in the hospitality and tourism sector, to ensure these businesses, often reliant on summer months, did not start cutting jobs. However the Eat Out to Help Out Scheme has now ended and the continued VAT cut on hospitality and leisure may not be enough to encourage consumers to continue to spend as the threat of the virus continues and they face rising job insecurity. The Chancellor needs to consider whether additional measures to stimulate consumption are warranted at the next fiscal event. (Paragraph 42) Avoiding long term unemployment