ANNOUNCED: NEW MEASURES TO SUPPORT THE ECONOMY

Yesterday afternoon the Chancellor announced a new round of measures to support the economy as we recover from the impact of coronavirus.

The key Announcements Are:

Help for Hospitality

• VAT on food, non-alcoholic drinks, accommodation and attractions will be cut from 20% to 5% from Wednesday 15th July 2020 until 12th January 2021. Further guidance on the scope of this relief is expected to be published by HMRC in the next few days.
• Every Briton will be given an "eat out to help out" discount. Meals eaten at any participating business Monday to Wednesday in the month of August will be 50% off at up to £10 per head. 

Housing Market

• An emergency stamp duty holiday has been announced meaning home-buyers will be temporarily exempt from paying the tax for the first £500,000 of any property price.
• This is expected to save an average of £4,500 and up to £15,000 on each purchase.
• The 3% higher rate for purchases of additional dwellings will continue to apply on top the revised standard rates.
• The increase in the stamp duty threshold from £125,000 to £500,000 is effective immediately and will run until the end of March 2021. 

Furlough: Job Retention Bonus

• The chancellor re-confirmed that the furlough scheme will come to an end in October.
• Businesses will be paid a £1,000 Job Retention Bonus by the government for every furloughed worker that is brought back and employed until the end of January 2021. Payments will be made from February 2021.
• To qualify, workers must have been continuously employed and earn an average of more than £520 per month in November 2020, December 2020 and January 2021.
• It will apply to all furloughed employees, with no cap on numbers.
• Further details on this element of the furlough scheme are expected to be announced in July 2020. 

Kickstart Scheme

• A new Kickstart Scheme fund will create government-subsidised jobs for unemployed young people.
• Employers will be able to offer a six-month placement for people on Universal Credit aged between 16-24, who are at risk of long-term unemployment. The Treasury will cover 100% of the National Minimum Wage for up to 25 hours per week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions, for each young employee. 
• There is no cap on the number of places available.
• Businesses will need to prove that the roles offered are additional rather than replacement roles, as well as provide training and support to help individuals find permanent jobs. 
• The scheme will be open for applications in July 2020 with the first jobs expected to commence in the Autumn. 

Training and Jobs

• From August 2020 to January 2021, apprenticeships and training will be supported by bonuses for businesses.
• Businesses will be offered a £1,000 per trainee payment with the grant capped at 10 jobs per firm.
• £2,000 is also available for every new apprentice under 25 and £1,500 for every new apprentice above 25 hired. 

Greening the Recovery

• Vouchers and grants of up to £10,000 will be issued to homeowners to pay for energy efficient upgrades to homes, such as loft and wall insulation.

Full details from gov.uk here.

If you would like to discuss any of the recent developments in more detail, then please do get in contact with us.