The Chancellor has today (08 July) given a comprehensive announcement to Parliament on a package of measures to support the economic recovery from the coronavirus effects. This is a quick overview to outline what has been announced and in future blogs we will cover these items in more detail, as we find out the final details:
- Supporting Jobs
- As part of the plan to support jobs, a Job Retention Bonus will be introduced to help to keep furloughed workers employed. UK employers will receive a one-off bonus of £1,000 for each furloughed employee who is retained in continuous employment as of 31 January 2021
- A £2 billion Kickstart Scheme to create new, subsidised jobs for those aged 16-24, claiming Universal Credit and at risk of long-term unemployment
- Funding will cover six-month job placements and the cover 100% of the national minimum wage for 25 hours a week. Employers will be able to top this up
- Businesses will be given £2,000 Apprenticeship Bonus for each new apprentice they hire under the age of 25. This is in addition to the £1,000 payment the Government already provides for new 16-18 year old apprentices and those under 25 with an Education, Health and Care Plan
- Various other measures including an increase to the number of work coaches and extension to National Careers Service
- Various investment in infrastructure projects to create tens of thousands of jobs
- Green Homes Grant – Homeowners and landlords will be able to apply for grants of up to £5,000, covering two thirds of the costs for green home improvements, such as loft, wall, and floor insulation
- 50% Reduction on Meals – The Government’s new Eat Out to Help Out scheme will provide a 50% reduction (up to £10 per head) for sit-down meals in cafes, restaurants and pubs across the UK from Monday to Wednesday every week throughout August
- VAT Reduction – The Chancellor announced a cut in the VAT rate for the hospitality sector (food, accommodation and attractions) from 20% to 5%. To take effect from next Wednesday until 12 January 2021
- Residential Stamp Duty (SDLT) Reduction – The Chancellor has extended the nil rate band from £125,000 to £500,000 from now until 31 March 2021
These items are hot off the press and obviously more details will be available over the coming days!
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