Economic Statement – 8th July 2020

Chancellor Rishi Sunak has announced the government's latest plans to stimulate Britain's economy ravaged by the effect of the Covid 19 epidemic.

Jobs

Job Retention Scheme

As already announced the current Job Retention Scheme (known as furlough) will be phased out from the 1st July 2020 and will end on 31st October 2020

Job Retention Bonus

A new Job Retention Bonus will be introduced to encourage employers who bring back workers from furlough. A £1,000 bonus will be paid per employee returning from furlough and who remains in work until at least January 2021. To qualify the employee must be paid at least £520 on average each month from November to the beginning of next year.

Kickstart Scheme

A new 'Kickstart Scheme' will pay employers to create new jobs for 16-24 year olds. These new jobs must be permanent and for a minimum of 25 hours per week paying at least the national minimum wage.

Apprenticeships

Firms will be paid a £2000 bonus for each new young apprenticeship role created. A bonus of £1,500 will be paid for new apprenticeship roles for those aged over 25.

Housing

Stamp Duty

The threshold for paying stamp duty will be raised temporarily from £125,000 to £500,000 until 31 March 2021.

Green Home Grant

A £2bn green homes grant will provide vouchers to homeowners and landlords to make their homes more energy efficient. This grant could make up to 650,000 homes more energy efficient.

Hospitality

VAT

VAT on hospitality and tourism will be cut from 20% to 5% from 15th July for the next six months. This will cover food, accommodation and attractions.

'Eat out to help out'

In August, everyone in the country will be given an "eat out to help out" discount. This will provide a discount of 50% on bills up to a maximum discount of £10 per head at participating restaurants, cafes and pubs from Monday to Wednesday.