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.