8 JULY 2020
Some good news in a form of further government assistance, Four months after his first Budget, the Chancellor has unveiled a summer economic update, with a commitment to encouraging job creation through a government ‘plan for jobs’ and stimulus for consumer spending, below is the short summary of the proposals, we shall provide more detailed information as it becomes available.
- The threshold for paying ( Stamp Duty ) tax on a home in England and Northern Ireland from £125,000 to £500,000;
- If a company returns a furloughed staff member to full time work successfully, they will be entitled to a £1,000 bonus, The individual must be continually employed through to January, and must earn at least £520 a month every month up until then – equivalent to the lower earnings band for national insurance.
- This will ensure employees will be doing “decent work” on their return, Sunak said, the bonus will be for all furloughed employees.
If all nine million workers are returned, the programme to retain them will be worth £9bn.
- A £2bn ‘kickstart’ scheme, with companies receiving funds to create jobs for youngsters at risk of long-term unemployment.
These will be new jobs, as the firms will have to prove they are additional positions, the government will directly pay firms wages for these young employees for six months. It will fund 25 hours’ work at the national minimum wage, resulting in a grant of some £6,500. The firms can apply for the scheme from next month.
The chancellor has urged all firms to hire as many ‘kick-starters’ as possible and said there will be no cap on this spending.
- Consumers will be given a 50 per cent discount on meals out during August as the government attempts to kick start the restaurant sector in the wake of Covid-19, the government needed to support the 1.8 million people that work in the catering sector.
Meals eaten at any participating business Monday to Wednesday will be discounted by 50 per cent, up to a maximum discount of £10 per head, including children.
- VAT on food, accommodation and attractions will be cut from 20 per cent to 5 per cent in a bid to restart demand hit by Covid-19, the cut will apply for six months, running from next Wednesday to January 12
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