Rishi Sunak's action to help pubs and restaurants boosts shares

Restaurant and pub stocks have risen sharply on Rishi Sunak’s measures to try and protect jobs in the battered hospitality and tourism sectors.

The Chancellor said in his summer statement that Government will cut VAT from 20% to 5% from next Wednesday until January 12 - a £4 billion catalyst for the economy. Sunak said the move would protect 2.4 million jobs.

He also announced an “eat out to help out” discount offering 50% off, up to £10 per head, on meals out on Monday to Wednesday during August. The scheme is called "Eat Out to Help Out".

Sunak said: "We need to give these businesses the confidence to know that if they open up, invest in making their premises safe, and protect jobs, demand will be theer, and be there quickly."

The moves sent leisure stocks higher. Beleaguered Frankie & Benny’s owner Restaurant Group rose 7% to 62p, Toby Carvery owner Mitchells & Butlers spiked 2% at 176p and Wetherspoon rose 6p to 1013p.

Shares in troubled cinemas operator Cineworld, which had fallen this morning, rallied to trade flat on the day around 58p. Premier Inn owner Whitbread gained 14p at 2318p.

More to follow.