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Summer 2020 Budget

Jul 8, 2020

The Chancellor, Rishi Sunak, has announced a number of measures in his Summer Statement in a bid to help the UK economy recover from the worst effects of Coronavirus.

Key Points

  • Stamp Duty threshold increased to £500,000 until 31 March 2021
  • VAT for the hospitality sector cut to 5% and 50% “eat out to help out” discount introduced
  • £1,000 job retention bonus for every furloughed employee brought back to work and retained until 31 January 2021
  • “Plan for jobs” kick start schemes announced
  • £3 billion green infrastructure budget announced

Property Market

A stamp duty holiday has been put in place to help revive the property market. Property buyers will be temporarily exempt from paying Stamp Duty on the first £500,000 of any property price.. The increase in the threshold from £125,000 to £500,000 is effective immediately and will be in place until the 31 March 2021.

Hospitality Help

A 50% discount has been announced for diners to help increase demand as well as a huge VAT cut for the hospitality and tourism sectors. Individuals 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. VAT on food, non-alcoholic drinks, accommodation and attractions is being reduced from the standard 20% rate to the reduced of 5%.

Work and Jobs

Protecting jobs and creating employment are at the heart of his mini-Budget with up to £30 billion set aside for boosting the jobs market.

“Plan for Jobs” Kick Start Schemes

  • A new £2 billion kick start scheme has been announced, being a key part of the Chancellor’s “Plan for Jobs”. The fund will create government-subsidised jobs for unemployed young people. Employers will be able to offer a six month placement for people aged between 16-24. The Treasury will cover 100% of the National Minimum Wage for each young employee for up to 25 hours a week with employers able to top up the employee’s pay.
  • £111 million will be invested to triple the number of trainee roles with businesses offered a £1,000 per trainee payment. The grant will be capped at 10 jobs per employer.For the next 6 months, the Government will pay businesses up to £2,000 for every new apprentice under 25. It will also pay £1,500 for every new apprentice over 25 that is hired.
  • Funding for the National Careers Service will be increased by £32 million over the next two years while the number of work coaches will be doubled to help unemployed people find jobs.

Green Investment

The Chancellor announced a £3 billion package of green investment to help create thousands of jobs.

  • £1 billion has been set aside to help make public sector buildings greener.
  • Homeowners can benefit from grants to pay for “green” upgrades to make their houses more energy efficient. Vouchers worth up to £5,000 will be issued while poorer households could get up to £10,000 to make the upgrades, such as loft and wall insulation.
  • A £40 million Green Jobs Challenge Fund is being introduced to create 5,000 jobs at environmental charities and public authorities.

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