Yesterday, Chancellor of the Exchequer Rishi Sunak unveiled a stimulus package of up to £30bn to help the UK recover from the coronavirus pandemic.
Key points from the mini summer budget:
- The Coronavirus Job Retention Scheme will not be extended beyond October. Instead, employers will be paid £1,000 for every member of staff still on their books at the end of January 2021. This could mean the government handing out up to £9bn if the UK brings back all nine million currently furloughed staff.
- A scheme for firms to be given £2,000 for each new apprentice under 25 they hire and a new bonus of £1,500 for apprentices over that age.
- Stamp duty will be abolished for properties worth under £500,000 until March 31, 2021.
- VAT will be cut from 20% to just % to help the hospitality industry until January 12, 2021. It will apply to food from restaurants, cafes and pubs and also accommodation in hotels, B&Bs, campsites, and caravan sites. The VAT cut also includes attractions such as cinemas, theme parks and zoos.
- Under the new Eat Out to Help Out scheme, diners will be given a half price voucher worth up to £10 to eat out throughout the month of August to help the hospitality trade recover. The deal will be available every Monday to Wednesday, and businesses will receive cash repayments within five working days.
- Mr Sunak also announced a £3bn package of green investment to help create thousands of jobs and to make public sector buildings greener. Homeowners will receive vouchers of up to £5,000 — and £10,000 for poorer households — to pay for green property upgrades. The Treasury said the measure is expected to support more than 100,000 green jobs. He also pledged up to £40m for a new Green Jobs Challenge Fund to create 5,000 jobs within environmental charities and public authorities. More than £100m of new funding has been set aside for carbon dioxide-reducing technology, with an extra £10m set aside for new electric car development projects.
Mr Sunak said: “Our message to business is clear: if you stand by your workers, we will stand by you.
“Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire.
“To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.”