Chancellor’s July Statement Highlights
Following the March Budget and the April Briefings measures this week Rishi Sunak, the Chancellor, gave us Part 2 and a taster of part 3 of the Government’s roadmap to recovery. Some of the measures are outlined below and our summer newsletter at the end of July will provide further details.
Job Retention Bonus
Mr Sunak announced a new, one-off Job Retention Bonus payable to any employer who has brought back furloughed employees and keeps them on payroll until the end of January 2021. The bonus is £1,000 per employee. The provisos are largely that the employee must do meaningful work and be paid at least £520 per month. This does mean you can bring back employees under the flexible furlough scheme. The payments will be made after February. More information will be released at the end of July.
There is also to be a £1Bn investment in the DWP to provide support for people who have lost their jobs to provide them with updated skills to assist their job search.
This a series of measures to get young people into work.
16-24 year olds claiming Universal Credit and deemed at risk of long term unemployment will get access to 6 month work placements fully funded by Government up to 25 hours per week at NMW.
£1,000 per traineeship offered to 16-24 year olds covers up to Level 3 qualifications.
New Apprenticeships: £2,000 per apprentice aged under 25 and £1,500 for those over 25 taken on between 1 August 2020 and 31 January 2021. This is in addition to the existing apprenticeship grants for 16-18 year olds.
Hospitality & Tourism Sector:
For 6 months from 15 July 2020 VAT the supply of food and non-alcoholic drinks, from restaurants, bars, cafes, pubs and similar is reduced to 5%.
A similar temporary relief will be available to the supply of accommodation and entrance to attractions. Further guidance on the actual scope will be available in the coming days.
Eat Out to Help Out
On Mondays – Wednesdays in August the Government will provide diners with a 50% reduction of the cost of their eat-in meal, up to a maximum of £10 per head per meal. The business will give the discount at the till and recover the “voucher” from the Government. The discount applies to all qualifying eat-in establishments and covers food and non-alcoholic drinks. Businesses MUST register to participate in the scheme. The portal opened on 13 July and payments will be made with a 5 day turnaround.
The 0% SDLT band for house sales is increased from £125,000 to £500,000 for the next 6 months. Effective from 8 July 2020.
There are many other policy initiatives and aims included in the policy document.
Part 3 of the Government’s roadmap to recovery will be fully unveiled in an Autumn Budget.