Chancellor’s Summer Statement 2020
31st July 2020
The Chancellor of the Exchequer, Rishi Sunak, MP, delivered his Summer Economic Update in Parliament in July.
Key points in his speech are:
- Job Retention Bonus: To help firms keep on 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.
- Kickstart Scheme: A new £2 billion scheme will also 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.
- Employment and support schemes: 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.
- Creating jobs: 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. In addition, £5.8 billion will be spent on shovel-ready construction projects to get Britain building.
- Eat Out to Help Out: To encourage people to safely return to eating out at restaurants the Government’s new discount scheme will provide a 50% reduction for sit-down meals in cafes, restaurants and pubs across the UK from Monday to Wednesday every week throughout August 2020.
- VAT: The rate of VAT applied on most tourism and hospitality-related activities will be cut from 20% to 5%.
- Stamp Duty: A temporary increase to the nil rate band of Stamp Duty from £125,000 to £500,000 has been introduced until 31 March 2021.