Mini budget summer 2020 - summary

Written by Entrepreneurs' Organization  |  9, July, 2020  |  0 Comments

On Wednesday, 8 July 2020, the Chancellor Rishi Sunak pledged to protect, support and create jobs and get pubs and restaurants "bustling again" as he unveiled a package to kickstart the economy’s recovery.

While updates to the associated Treasury Direction and HMRC’s Guidance are awaited, here are the key updates:

1) Job Retention Bonus

  • Chancellor announced new job retention bonus for employers who bring back furloughed staff.
  • The government will pay a £1,000 bonus to businesses for each furloughed person brought back and employed through to January-21.

2) VAT

  • VAT on food, accommodation and attractions has been cut from 20% to 5%, a £4bn boost for the industry.
  • VAT will be reduced from 15 July until January 12th.

3) Stamp Duty:

  • The Chancellor announced a temporary holiday on stamp duty to help revive the property market.
  • Previously, there was no stamp duty on transactions below £125,000 (or £300,000 for first-time buyers).
  • Now, homebuyers will be temporarily exempt from paying the Stamp Duty tax for the first £500,000 of any property price.
  • It takes effect immediately from 8 July 20 until 31 March 21.

4) Kickstart Scheme

  • The fund will create government-subsidised jobs for unemployed young people and employers will be able to offer a six-month placement for people aged between 16-24.
  • For the next six months, the Government will pay businesses up to £2000 for every new apprentice.
  • It will also pay £1,500 for every new apprentice above 25.

5) 50% Meals Discounts

  • Every Briton, including adults and children, will be given an "eat out to help out" discount.
  • Meals eaten at any participating restaurants, on sit-down meals and non-alcoholic drinks, Monday to Wednesday in the month of August will be 50% off at up to £10 per head.

6) £3bn Green jobs plan

  • The Chancellor announced a £3bn package of green investment to help create thousands of jobs.
  • The grants will cover at least two thirds of the cost, up to £5,000 per household.


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