Summer Economic Plan - July 2020

C h a n c e l l o r R i s h i S u n a k . ..has today delivered his summer economic plan, this includes plans to protect jobs, help younger workers and encourage spending with measures such as a VAT cut for leisure activities and a restaurant voucher scheme.

Here is a summary of the main points.


‘ J o b r e t e n t i o n b o n u s ‘


A one-off £1000 payment to employers for every furloughed employee retained to the end of January 2021. Applies to workers earning over £520 per month, UK-wide


V A T c u t


VAT cut from 20% to 5% from 13 July to 12 January 2021 for selected areas Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered

Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected


‘ STAMP DUTY CUT’


The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000

Applies from 8 July until 31 March 2021 Almost nine out of ten transactions would be tax-free as a result


Discount on restaurant meals in August

· “Eat out to help out” scheme offers 50% discount for every diner, up to £10 a head, from Monday to Wednesday throughout August· Covers food and non-alcoholic drinks only · Applies at participating restaurants, pubs, cafes etc · Restaurant owners can claim the discount in full from the government via an online form


Young workers – Kick Start & Apprentices · “Kickstart scheme”: £2bn fund to pay for six-month work placements for 16 to 24-year-olds on universal credit · Payments cover national minimum wage for 25 hours per week, plus national insurance and pension contributions for Great Britain · £1,000 grant per trainee for employers who take on new trainees aged 16-24 in England, aiming to triple trainee numbers · £2,000 grant for employers per apprentice under 25 hired, £1,500 for those over 25, for six months starting 1 August (in England)


‘Green homes grant’ Up to £5,000 per household for projects to make homes more energy efficient in England – Will match owners or landlords’ spend, £2 for £1 for most homes up to £10,000 per household fully funded for low-income households


Support for young workers – Funding · Doubling the number of work coaches at Job Centre Plus across Great Britain, with extra help for young jobseekers · £150m extra for the Flexible Support Fund, which provides help for jobseekers (in Great Britain) · £101m to fund studies for 18 to 19-year-olds in England unable to find work · £95m to expand the Work and Health Programme to provide additional support for unemployed people on benefits for more than three months · A job-finding support service for those out of work for less than three months, costing £40m · £32m over two years for a National Careers Service to provide advice on work and training (in England)