THURSDAY, JULY 09TH, 2020

Chancellor’s Summer Statement

← BLOG - Chancellor’s Summer Statement

Yesterday we saw a further £30bn of support to try and kickstart the economy and encourage spending. Whilst this is a massive figure, our opinion is that there are likely to be further announcements in the Autumn statement and extensions of schemes already in place.

Here is a summary of what was announced yesterday;

 

Six-month VAT cut for attractions, hotels and restaurants

  • VAT rate cut from 20% to 5% from 13 July to 12 January 2021.
  • Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered
  • Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected. We are waiting for further guidance from the HMRC.

 

‘Job retention bonus’

  • A scheme to encourage companies to retain furloughed staff.
  • Applies to workers earning more than £520 per month.
  • A one-off £1000 payment to employers for every furloughed employee retained to the end of January 2021

 

Stamp duty cut and ‘green homes grant’

  • Stamp duty threshold on residential property in England and Northern Ireland will rise from £125,000 to £500,000
  • Applies immediately until 31 March 2021. This means that around nine out of 10 transactions would be tax-free as a result.
  • Also available is up to £5,000 per home for improvements to make homes more energy efficient in England
  • The government will match owners or landlords’ spend, £2 for £1 for most homes
  • Up to £10,000 per household fully funded for low-income households

 

Discount on restaurant meals in August

  • “Eat out to help out” scheme will be a 50% discount for every diner, up to £10 a head, from Monday to Wednesday throughout August (including children)
  • Covers food and non-alcoholic drinks only
  • Applies at participating restaurants, pubs, cafes etc
  • Restaurant owners can register online and claim the discount in full from the government via an online form.

 

Kickstart Scheme for young workers

  • £2bn fund to pay for six-month work placements for 16 to 24-year-olds receiving universal credit. Payments cover national minimum wage for 25 hours per week, plus national insurance and pension contributions for Great Britain
  • £2,000 grant for employers per apprentice under 25 hired, £1,500 for those over 25, for six months starting 1 August in England only.
  • £1,000 grant per trainee for employers who take on trainees aged 16-24 in England, aiming to triple trainee numbers
  • £150m extra for the Flexible Support Fund, which provides help for jobseekers in Great Britain.
  • Doubling the number of work coaches at Jobcentre Plus across Great Britain, with extra help for young jobseekers
  • £101m to fund studies for 18 to 19-year-olds in England unable to find work
  • £95m to expand the Work and Health Programme to provide additional support for unemployed people on benefits for more than three months
  • A job-finding support service for those out of work for less than three months, costing £40m
  • £32m over two years for a National Careers Service to provide advice on work and training in England only.

 

Infrastructure and decarbonisation

  • £1bn of grants to public sector bodies to improve energy efficiency.
  • £50m towards a social housing decarbonisation fund, aimed to improve the energy efficiency of socially rented homes.
  • The Chancellor also gave further details of a £5.6bn package of infrastructure measures, previously announced by the Prime Minister on 30 June.
  • This includes measures for hospitals, school buildings, transport, and housing.

 

Craig Croft-Rayner

Craig Croft-Rayner Craig is a Director and Financial Planner with 5 years of dedicated experience in the finance sector. Craig's commitment to excellence is evident as a proud member of the Chartered Insurance Institute and holds a diploma from the Personal Finance Society (PFS). He is currently undergoing training to achieve the esteemed Chartered Financial Planner status. Craig is passionate about empowering individuals to make informed financial decisions and achieve their financial goals.

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