Yesterday, the Chancellor made an unusual Summer Statement announcing a range of measures to help stem the damage from the Coronavirus. Here's a quick summary of the main points.
Economic Measures
Three point strategy to support, protect and retain jobs
Furlough scheme to be wound down gradually from October
£1,000 bonus payable to employers for retaining furloughed employees
‘Kickstarter’ job package for 16-24 year olds
Government subsidy worth up to £6.5k for each employee taken on under Kickstart Scheme
£2,000 bonus for employers taking on trainees
£1,500 bonus for apprentices over age 25
Companies able to apply for job subsidies within one month
Additional funding for the National Careers Service
Help for long term unemployed
£1.6bn additional funding for DWP
Infrastructure/Housing
£3bn scheme to make homes and buildings more environmentally friendly
£2bn Green Homes Grant to make homes energy efficient – up to £5k per household
£1bn to improve energy efficiency of public buildings
Property transactions fell by 50% in May
Stamp duty threshold raised to £500K (from £125K) until 31/3/21 effective immediately. Predicted 9 out of 10 people will pay no SDLT this year.
Hospitality and Tourism
1.8 million people employed in the hospitality and tourism sector. 1.4million workers in the sector have been furloughed. 80% of sector stopped trading in April
VAT on food, accommodation and attractions to be cut to 5% from 15 July until Jan 12th 2021
August special – ‘Eat out to help out’ – 50% discount available Mon to Weds worth up to £10/head (at participating establishments).
The Chancellor confirmed that there will be a Budget and a Spending Review in the Autumn. In his speech he also remarked that “Over the medium-term, we must, and we will, put our public finances back on a sustainable footing”.
As always, if you have any questions or would like to discuss this in more detail, please get in touch.
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