Restarting the economy

Chancellor Rishi Sunak’s address in the House of Commons today has brought updates to existing schemes, as well as introducing some new incentives to help in restarting the economy. There is a clear focus on trying to prevent unemployment rates from spiralling in the coming months. The chancellor continues to refute the notion that mass unemployment is inevitable; this is a dream that the whole country will want to rally behind. Sunak finished his speech by stating that “this has never just been a question of economics, but of values: I believe in the British people’s fortitude and endurance.”

We highlight the key announcements here:

Job retention employer’s bonus

Employers who bring back furloughed staff and keep them on payroll until January 2021 will receive a £1,000 bonus per employee. As well as needing to stay on payroll until the new years, employees must also be paid a minimum of £520 per month.

Kickstart job scheme

A new £2bn scheme has been announced with the sole purpose of creating more jobs for young people and preventing a generation from being “left behind”. The funding pledged by the government will be used to subsidise 6-month work placements for 16-24-year olds who are currently on Universal Credit.

Furthermore, the government will pay employers £1,000 to take on trainees and £2,000 to hire apprentices (£1,500 if apprentice is over the age of 25). Additional funding will also be made available to the DWP to help jobseekers, as well as to fund career advisors.

Stamp duty freeze

An immediate and temporary freeze on stamp duty is to run until 31 March 2021 on the first £500,000 of all property sales in the UK. This holiday will be effective immediately.

VAT cut for hospitality and tourism sectors

An interim cut in the VAT rate will see the hospitality and tourism sectors paying a much reduced 5% VAT on food, accommodation and attractions. The new VAT rates will apply from 15 July 2020 and run until 12 January 2021.

Eat out to help out discount

The chancellor’s vision of seeing pubs, restaurants, cafes & B&Bs “bustling again” has given birth to an incentive that will see diners benefitting from up to a 50% discount on their restaurant bills in participating restaurants. People will be entitled to up to £10 off per person when eating out between Monday-Wednesdays throughout August.

Green jobs plan

Sunak’s intent for a “green recovery” has cited an announcement that £2bn will be used towards Green Homes Grants, through which homeowners and landlords can apply for vouchers to make their homes more energy efficient. This will also create local jobs, satisfying the focus of the Job Retention Scheme. A further £1bn will become available to improve the energy efficiency of public sector buildings.

Get in touch

If you have any questions about these (or any previous) announcements, please get in touch. We ensure that we understand all of the measures being taken to battle the impact of the coronavirus, putting us in a great place to help. You can email or call the office on 01392 241228.