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Summer Budget 2020: Key Announcements

Summer Budget 2020: Key Announcements

On July 8th, Chancellor Rishi Sunak announced a summer budget to help the economy recover from the impact of the Covid-19 pandemic, pledging to “protect, support and create jobs” to get the economy back on track.

Key Announcements:

Stamp Duty Land Tax (SDLT) Relief:
To support the property market, the threshold for SDLT payment has been increased from £125,000 to £500,000. The increase in the threshold is temporary and will run till 31st March 2021. This is a great relief for first time home buyers.
Coronavirus job retention bonus:
The job retention scheme is due to be closed in October-2020 and there is a potential risk that many employees may lose their jobs. To reward employers who bring back employees from furlough and employ them continuously through 31st January 2021, the government has announced a bonus of £1,000 per employee. In order to be eligible for the bonus, the employer will need to pay at least an average of £520 per month to the employee in the month of November, December and January.

New Kickstart Scheme to support young people in work

A £2 billion Kickstart Scheme will provide high quality, 6 month placements from Autumn this year. Funding available for each job placement will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top up this wage. The scheme will be focused on supporting young people who are on Universal Credit and at risk of long term unemployment. Work Coaches will work with young people to ensure they access the best support package to meet their needs. Organisations across the private, public and voluntary sectors will be able to apply to create high quality roles to be funded through this scheme.

For businesses that take on new trainees the government will pay £1,000 per trainee. The benefit will be capped at £1,000 per trainee.

Additionally, employers who create new apprenticeships, will receive a grant of £2,000 per apprentice. The government will also pay £1,500 for every new apprentice above 25 hired.

Green jobs:
To support green investment and to create more jobs, homeowners and landlords will be able to apply for vouchers from September onwards to make their housing more energy efficient. The vouchers will cover two thirds of the cost up to a maximum of £5,000 and for low income households the maximum of £10,000.

Hospitality and leisure sector will pay reduced rate of VAT from 15th July 2020 through to 12 January 2021. The rate has been reduced from 20% to 5% and will include food, non-alcoholic drinks, accommodation and tourist attractions.
Discounted Food:
Perhaps the most unique measure, under which every individual in the Briton will receive a 50% “eat out to help out” discount at participating businesses between Monday to Wednesday for the month of August. The maximum discount will be £10 per head and businesses can register for the scheme online, and the funds will be paid back to them within 5 working days.
Overall the mini budget looks positive and is a great addition to the ongoing support measures the government has announced to reduce the impact of Covid-19.

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