SUMMER STATEMENT

The Summer Statement ‘mini budget’ by chancellor Rishi Sunak on 8 July 2020 in the wake of the coronavirus crisis looks to stimulate the economy as the UK enters a ‘severe recession’. The chancellor also added that he will produce a Budget and spending review in the Autumn.

The key announcements made were:-

  • Job Retention Bonus

One off £1,000 payment to employers for every furloughed employee retained to the end of January 2021.

To qualify, the employee must be paid at least £520 on average per month.

  • VAT

VAT will be cut from 20% to 5% for hospitality and tourism industries from 15 July 2020 to 12 January 2021.

Accomodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected.

  • Stamp Duty

From 8 July 2020 to 31 March 2021, the threshold on stamp duty on residential properties will rise from £125,000 to £500,000.

Up to £5,000 per household for projects to make homes more energy efficient in England. Will match owners or landlords spend, £2 for £1 for most homes.

  • Kickstart Scheme

The government will pay employers to create additional jobs for 16-24 year olds at risk of long-term unemployment.

The payments will cover national minimum wage for 25 hours per week plus national insurance and pension contributions.

  • Apprenticeships

Employers will be paid £1,000 grant per new trainee hired aged 16-24.

For six months starting 1 August, £2,000 grant for employers per apprentice under 25 years old hired and £1,500 grant for employers per apprentice over 25 years old hired.

  • Eating Vouchers – ‘Eat out to help out’ scheme

At participating restaurants, pubs etc, 50% discount for every diner that eats out up to £10 per head for food and non-alcoholic drinks from Monday to Wednesday throughout August.

Restaurant owners claim the discount from the government via an online form.