July 08, 2020
Article
Earlier today The Chancellor Rishi Sunak set out his Summer Statement; a series of economic measures to get the economy up and running again after the country was forced into lockdown in March.
Here is what was announced:
Furlough Scheme
- The furlough scheme will wind down flexibly and gradually until the end of October
- The introduction of a new policy - the Job Retention Bonus of £1,000 will reward and incentivise employers who bring furloughed staff back
Discounts on eating out
- 'Eat Out To Help Out' discount, 50% off up to a maximum discount of £10 per head on sit-down meals and non-alcoholic drinks Monday-Wednesday throughout August
VAT cuts for hospitality and tourism sectors
- VAT on food, accommodation and attractions will be cut from 20% to 5% until 12 January 2021. This includes food and non alcoholic drinks sold by restaurants, cafes , bars and pubs and similar premises as well as supplies of accommodation including hotels and B&BS and admission to attractions, including cinemas, zoos and theme parks
Introduction of the Kickstart Scheme
- The 'Kickstart' Job Retention Scheme will give under 25’s directly paid employment, with training and support to get a permanent job. The government is to pay wages for six months and employers can apply to be part of the scheme from August. There is no cap on places, but the employee must work at least 25 hours per week
Training
- Firms will get a payment of £2,000 for each apprentice they take on
Stamp Duty
- The threshold for Stamp Duty will increase from £125,000 to £500,000. The cut will be temporary, running until 31 March 2021
Green investment
- Vouchers worth £5,000 will be made available out of a £2bn pot to retrofit homes with insulation, helping to cut carbon emissions
For further information on yesterday's announcements, please click here.