Summer Economic Update
Rishi Sunak unveiled his budget on 8 July 2020 in an attempt to boost the economy in the wake of the coronavirus pandemic.
We have broken this into four parts.
- Help for the hospitality sector
- Housing market
- Jobs and training
HELP FOR THE HOSPITALITY SECTOR
From the 15th July 2020, vat on food and non-alcoholic drinks (served from restaurants, bars, cafes and similar premises) will be reduced from 20% to 5%. This will also cover accommodation and visitor attractions.
Every Briton will also be given an “Eat Out to Help Out” discount. Meals out at any participating business on Monday to Wednesday in the month of August will receive 50% off up to £10.00 per head.
With immediate effect the threshold on which residential stamp duty is paid will be temporarily changed. The temporary threshold will rise from 125k to 500k. This stamp duty holiday will cease on the 31ST March 2021.
JOBS AND TRAINING
The Government will pay a business a £1,000 job retention bonus for every furloughed worker that is brought back and employed until the end of January 2021. Workers must have been continuously employed and earn an average of more than 520 per month in November, December and January.
Mr Sunak unveiled a new £2 billion Kickstarter Scheme. The plan is to create government subsidised jobs for unemployed young people. The employer will be able to offer a six month placement for people aged between 16-24. The Treasury will cover 100% of the National Minimum Wage for each young employee for up to 25 hours a week with firms able to top up the workers pay.
Businesses will be offered a £1,000 per trainee payment. The grant will be capped at 10 jobs per firm.
For the next 6 months, the Government will pay businesses up to £2,000 for every new apprentice under 25. It will also pay £1,500 for every new hired apprentice over 25.
Homeowners can benefit from £2 billion grants to pay for green upgrades to make their houses more energy efficient. Vouchers worth up to £5,000 will be issued. Low income householders could get up to £10,000.
To obtain further detail on the Summer Economic Update, contact the team at Spirare.