Chancellors economic update 8th July 2020: summary of announcements



Rishi Sunak made a series of announcements in his summer economic update delivered to the House of Commons this afternoon.


We've put together a summary below of the key points announced:


Job retention bonus

Employers will receive £1,000 for every furloughed employee that they bring back to work until at least January. The workers must be paid at least £520 each month on average. If all furloughed employees were brought back this way, the scheme would cost £9bn.


Kickstart scheme

For a six-month period, the government is offering to pay wages and overhead costs when employers give new jobs to 16- to 24-year-olds at risk of long-term unemployment. They must be paid at least the minimum wage and work minimum 25 hours a week. There will be no cap on the number of places. £2bn is being made available to start off.


Apprenticeships

The government will offer £2,000 to employers for every under-25 apprentice they hire, and £1,500 for every 25+ apprentice from August 1st to January 31st. (This is additional to the existing £1,000 payment for 16- to 18-year-old apprentices.)


Green homes grant

From September, home owners and landlords can apply for vouchers to boost energy efficiency, up to £5,000 per household (and up to £10,000 per low-income household). Worth £2bn.


Temporary stamp duty cut

The current threshold for stamp duty is £125,000 (but £500,000 for first-time buyers). It will now be increased to £500,000 for everyone. This takes effect immediately, and until March 31st.


VAT cut for hospitality and tourism

From July 15th to January 12th, VAT will be reduced to 5% on food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar across the UK, and on supplies of accommodation and admission to attractions.


‘Eat Out to Help Out’

Throughout August, between Monday and Wednesday each week, everyone will be given a 50% discount of up to £10 per head on meals at participating food establishments. Businesses will need to register on a website, which will be up on Monday.

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