MHA Carpenter Box - Summer Economic Update: a Plan for Jobs
Published: 14 Jul 2020
On Wednesday 8 July, the Chancellor of the Exchequer Rishi Sunak presented his ‘Plan for Jobs’ to outline how the government will boost job creation in the UK.
For the UK, the economy at the start of 2020 had just started to regain confidence and a new sense of stability following breakthroughs in Brexit and the appointment of a majority Conservative Government. Today, it couldn’t be any more different with predictions of a severe recession ahead and many industries facing difficult challenges to regain pre-lockdown trading levels, or even to survive.
During his speech, the Chancellor declared “we are entering the second phase of our economic response” before announcing £30bn worth of measures designed to protect, support and create jobs.
The key points include:
- A Job Retention Bonus will provide employers £1,000 for each employee who returns to work from furlough and who is paid at least £520 per month on average between November and end of January 2021.
- A temporary reduced 5% rate of VAT will apply to supplies of food and non-alcoholic drinks for restaurants, pubs, bars and cafes. The temporary cut in VAT will also apply to accommodation and tourist attractions.
- During August every diner can receive a 50% discount of up to £10 per head on their meal, at any participating and eligible food service establishment.
- Effective immediately, the Government will temporarily increase the Nil Rate Band of Residential SDLT to £500,000.
- The Government will provide at least £2 for every £1 spent by homeowners and landlords to make properties more energy efficient, up to £5,000 per household.
- Under a Kickstart Scheme for 16-24 year olds, the Government will fund 100% of the National Minimum Wage for 25 hours of work per week, plus the associated employer NIC and minimum auto enrolment contributions.
- The Government will fund employers who provide trainees with work experience at a rate of £1,000 per trainee.
- The Government will provide an additional £17 million this year to triple the number of sector-based work academy placements in England.
- Employers can receive payments of £2,000 for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice aged 25 and over, to run from 1 August 2020 to 31 January 2021.
There will undoubtedly be more detail to follow on all the above over the coming days and weeks. In the meantime, if you would like more detailed one-to-one advice on any of the issues raised in the Update, please get in touch or give us a call on 01903 234094.