Summer Economic Update 2020

As Government support schemes are gradually withdrawn and businesses can start to fully assess the harm sustained by lockdown and what the ‘new normal’ will look like, now is a crucial time to get key guidance to help your business adjust to this new future and take advantage of any tax and financial opportunities.

Chancellor of the Exchequer, Rishi Sunak, delivered the Summer Economic Update on 8th July 2020.

To help you navigate these unsure times, we will be publishing a collection of special insights and commentary from our experts that will cover the key points from this economic update on the Government’s recovery plan for the UK.

8 key points

Supporting the Labour Market

  • £2bn “kickstart scheme” to create more jobs for young people. The fund will subsidise six-month work placements for people on Universal Credit aged between 16-24, who are at risk of long-term unemployment.
  • A pledge to provide 30,000 new traineeships for young people in England, giving firms £1,000 for each new work experience place they offer.
  • Apprenticeships – business will be given £2,000 to hire apprentices in the next six months.
  • £1bn to DWP to support millions back to work

Supporting Business

  • New Jobs Retention Bonus – £9bn support package for business – an employer can bring back furloughed staff and if they continue to employ them to January 2021 the government will pay a £1000 bonus.
  • Green Recovery – a £2bn Green Homes Grant under which “homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient and create local jobs. The grants will cover at least two thirds of the cost, up to £5,000 per household.
  • £1bn of funding to improve the energy efficiency of public sector buildings.
  • Temporary Stamp Duty cut– a temporary holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland, to run until 31 March next year.
  • Supporting consumption
  • A VAT cut on food, accommodation and attractions to support the Hospitality and Tourism industry. VAT will be reduced, from next Wednesday until January 12th 2021, from 20% to 5%
  • “Eat Out to Help Out” – to get customers back and help to protect jobs, the government will give everyone 50% off meals in participating restaurants during August. The discount will go up to £10 per head for adults and children, and apply Monday to Wednesday. The scheme will help people “Eat Out to Help Out” the hospitality sector.

Blogs

Economic Update – Andrew Moorby’s comments
Eat Out to Help Out Scheme – registrations open