The 2020 Summer Statement
Date Published: July 9, 2020
In response to the ongoing Coronavirus pandemic, the Chancellor has announced a package of measures to help boost the recovery of the UK economy.
Rishi Sunak’s Mini-Budget focused on the hospitality and housing sectors as well as providing a boost to encourage jobs and training, with additional measures to support green initiatives.
We bring you a round-up of the key announcements from Mr Sunak.
Hospitality and Tourism
A £4bn boost for the hospitality industry comes in the form of a VAT cut on food, non-alcoholic drinks, accommodations and attractions for the period 15th July 2020 to 15th June 2021. For this period the VAT rate comes down to 5% for relevant businesses.
To help the catering industry recover from months of lockdown, participating businesses can offer an “eat our to help out” discount and offer 50% off meals purchased Monday to Wednesday during August. The initiative covers up to £10 per head.
Jobs and training
The Chancellor used his Summer Statement to focus on helping businesses retain their workforce to protect employees and boost employment.
A retention bonus of £1,000 will be paid to businesses for each furloughed worker brought back and employed until 31st January 2021. Eligible employees will be earning an average of more than £520 per month in November, December and January. They also must be continuously employed.
Additionally, the introduction of the Kickstart Scheme will create government-subsidised jobs for 16 to 24-year-olds by asking employers to offer six-month placements. The Government will meet 100% of the National Minimum Wage for each employee for up to 25 hours per week.
Traineeships and apprenticeships also see a funding boost. A grant of £1,000 per trainee payment will be offered, capped at ten jobs per business. For apprenticeships, the Government will offer up to £2,000 per new apprentice under 25. There will also be a payment of £1,500 for each new apprentice aged over 25 hired.
A stamp duty holiday has been introduced to help the property market. The holiday means that buyers will now be exempt from stamp duty on the first £500,000 of their property purchase price. This holiday is running until 31st March 2021.
Making the recovery eco-friendly
Homeowners will be able to access a fund of £2bn in grants to upgrade their homes to be more energy-efficient. The scheme will provide at least £2 for each £1 spent by homeowners on these projects.
Additionally, up to £40m is provided to a Green Jobs Challenge Fund aiming to create 5,000 jobs at environmental charities and public authorities. An extra £10m will be granted to new electric car development projects.
For BTCHub users
If you use BTCHub, then rest assured we’re working on updating our software for the VAT changes announced and will shortly share information with you that will advise you how to handle the changes within our software.
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