The Chancellor, Rishi Sunak has today delivered a summer statement. Detailing some of the changes which are to be put in place to help a recovery from the negative economic effects of the Coronavirus Pandemic.
We have put together a summary of today’s announcements, when any further details are released, we will keep you updated.
Job Retention Scheme Bonus
- A Job Retention Scheme Bonus will be introduced to help firms keep furloughed employees employed. Employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
- The employee has to earn more than £520 per month on average between the start of November 2020 and the end of January 2021.
- The bonus will be made from February 2021.
- Kickstart scheme – to create fully funded six-month job placements for 100% of the National Minimum Wage for 25 hours a week. Those aged 16 – 24 who are claiming Universal Credit and at risk of long-term unemployment will be eligible.
- Apprentices – Businesses will be given £2,000 for each new apprentice they hire under the age of 25 and £1,500 for any apprentice over 25. This is in addition to the £1,000 payment the Government already provide for 16-18 year old apprentices. The apprentice must be hired from 1 August 2020 to 31 January 2021.
- Traineeships – To provide high quality work placements and training for 16-24 year olds, the government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee.
Hospitality Sector & VAT
- Temporary VAT cut for food and non-alcoholic drinks.From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK.
- Temporary VAT cut for accommodation and attractions.From 15 July 2020 to 12 January 2021, to support businesses and jobs, the reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK.
- Eat Out to Help Out Scheme – this is to support businesses and protect the jobs of 1.8 million employees, by encouraging people to return to eating out.Every individual dining will be entitled to a 50% discount of up to £10 per head on their meal at any participating restaurant, café, pub or other eligible food service establishment. This scheme is available Monday – Wednesday for the month of August.
- A temporary increase to the Nil Rate Band of Residential SDLT (Stamp Duty) from £125,000 to £500,000 until 31 March 2021. This will apply from 8 July 2020 until 31 March 2021.
Green Homes Grant
- The government will introduce a grant to provide at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household.
- Lower income households, the scheme will fully fund energy efficient changes up to £10,000 per household.
We will keep you updated with any further changes. To view the full speech made today by the Chancellor please click here.