9th July 2020
Chancellor's Summer Statement
Yesterday saw the release of the eagerly awaited summer statement. As usual, we wait for the detail to be provided but have put together a summary of the key points in the meantime.
The main focus of the statement was on jobs, with the following announcements:
The chancellor confirmed the Coronavirus Job Retention Scheme will come to an end in October as previously announced.
He also announced incentives to bring furloughed employees back from furlough and for employers to create new job opportunities. Employers who bring back furloughed staff and continue to employ them from November to January will receive a £1,000 bonus per employee. The employment must be continuous and the employee must earn an average of £520 per month over this period to qualify.
Bonuses of between £1,500 and £2,000 will be paid to employers who take on trainees and apprentices .
A new scheme called the ‘Kick Start’ scheme will be launched. The scheme will encourage employers to create new jobs for 16-24 year olds and the government will pay their wages plus overheads for the first six months, estimated to be worth £6,500.
A temporary reduction in the VAT rate will apply to all businesses in the food, accommodation and attractions sectors. The VAT rate will fall from 20% to 5% from next Wednesday 15th July to January 2021.
The “eat out to help out” scheme will also be introduced for the month of August: every-one, including children, will receive a discount for participating businesses. Meals eaten Monday to Wednesday will be entitled to a 50% discount capped at £10 per head. Businesses will need to register for the scheme through a website opening Monday 13th July. Those businesses can then claim the money back weekly.
A reduction in stamp duty has been introduced with immediate effect, increasing the nil rate threshold from £125,000 to £500,000. The increase will be temporary and will cease in March 2021.
We will provide more detail, including dates and links, as soon as it is available to us.