Summer Economic Update July 2020
The Chancellor of the Exchequer, Rishi Sunak, presented his ‘Plan for Jobs’ to Parliament on Wednesday 8 July 2020, to outline how the government will boost job creation in the UK. The plan includes:
- A Job Retention Bonus that will be introduced to help firms keep furloughed workers. UK Employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
- A new £2 billion Kickstart Scheme will be launched to create hundreds of thousands of new, fully subsidised jobs for young people across the country. Those aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible. Funding available for each six-month job placement will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.
- A total of £1.6 billion will be invested in scaling up employment support schemes, training and apprenticeships to help people looking for a job. Young people, who are amongst the worst hit by the crisis, will benefit from this.
- The plan will also create tens of thousands of jobs through bringing forward work on £8.8 billion of new infrastructure, decarbonisation and maintenance projects.
- A temporary increase of zero Residential SDLT (Stamp Duty) from £125,000 to £500,000 will be introduced until 31 March 2021. This will drive growth and support jobs across the housebuilding and property sectors.
- The rate of VAT applied on most tourism and hospitality-related activities will be cut from 20% to 5%.
- To encourage people to safely return to eating out at restaurants, the Government has introduced a new Eat Out to Help Out discount. The scheme will support over 129,000 businesses in the hospitality industry. Diners can get 50% off meals and non-alcoholic drinks, up to £10 per person, at participating restaurants, bars and cafes when they eat in. The scheme is valid all day every Monday, Tuesday and Wednesday during August. Participating restaurants and establishments will be reimbursed for the discount they pass onto customers. Detailed guidance and registration details for restaurants and establishments will be published on 9 July and restaurants and outlets can register for the scheme from Monday 13 July.
Chamber member, KPMG have provided a high level overview of the proposed changes announced. You can read the overview below or download a PDF copy here: Summer-Statement-OaP-8-July-20