Since March 2020 over 700,000 people have lost their jobs and the British economy has shrunk by 10% (the largest fall in over 300 years).

Sunak said: “We have announced over £280Bn of support protecting jobs, keeping businesses afloat [and] helping families get by. Despite this unprecedented response the damage Coronavirus has done to our economy has been acute.

“It’s going to take this country and the whole world a long time to recover from this extraordinary economic situation but we will recover. This budget meets the moment with a three part plan to protect the jobs and livelihoods of the British people”

Budget measures include:

• Extending the furlough scheme to September 2021.
• Business rates holiday in England extended by three months.
• Extended the £20-a-week top-up to universal credit for six months.
• Extension of the 5% VAT rate.

Sean Haley, regional chairman at Sodexo UK & Ireland, said that while he had been encouraged by the early announcement of an increase in the Levelling Up Fund to £4.8bn, and the £150m in support for theatres, sports clubs and other venues under threat, he felt the Budget had missed an opportunity.

He added: “If this policy [Levelling Up], which played such a starring role in the manifesto, is to start delivering, then I feel strongly that social value must be embedded right from the beginning.

“This is why we have thrown our support behind Rt Hon Justine Greening’s 14-Goal proposed framework for Levelling Up. The framework ‘Levelling Up Goals’ provides the clearest iteration of the areas that must be addressed if this challenge is going to be met head on.”

Sodexo UK&I recently launched its Social Impact Pledge 2021, which includes commitments to supporting the Levelling Up agenda – pledges which will help individuals and businesses overcome social and cultural challenges through skills development, social mobility and job creation.

UKHospitality chief executive Kate Nicholls, commented: “The Chancellor has announced support to help our sector get back up and running, now it is vital that the Government sticks to its date of June 21st for a full reopening of the sector.

“Delay would see more businesses fail, more jobs lost and undo much of the good work the Chancellor has done to date.”

She welcomed the extension of the 5% VAT rate and felt the decision to maintain business rates at a heavily reduced rate for the rest of the year was ‘great’.

Steve Hobbs, chair of the Foodservice Equipment Association, said that he welcomed the support the government was giving, but added: “What’s needed is a growth strategy that will do more to rebuild the foodservice industry, and its supply chain, as we embark on the recovery.”

He says this should include investment and incentives to generate new jobs in the hospitality supply chain; incentives to build and develop business, including tax breaks to encourage energy efficiency; encouragement for more investment in the hospitality industry; and more investment in training.

And Neil Pattison, director at the UK’s biggest hospitality jobs board, Caterer.com, said: “The gradual re-opening of hospitality will continue to pose major challenges to employers so the extension of the furlough scheme and 5% VAT rate are a crucial lifeline for our sector.

“Hospitality will play a pivotal role in rebuilding the economy, creating jobs and generating income. Whilst we await re-opening it is essential that the ‘restart’ grant scheme is rolled out as quickly as possible, to get businesses through the next few months.”