Chancellor’s Summer Statement

Chancellor’s Summer Statement
9th July 2020 Debbie

Yesterday, 8 July 2020, Rishi Sunak issued his Summer Statement to assist the UK’s economic recovery from Coronavirus

Coronavirus Job Retention Bonus

The intention is the Job Retention scheme will wind down flexibly and gradually by 31 October 2020.  To persuade employers to retain staff a Job Retention Bonus of is being introduced and will be paid to employers for each furloughed employee that is still employed at 31 January 2021.

The bonus will be a one-off payment of £1,000, payable to UK employers, for every furloughed employee who remains continuously employed through to 31 January 2021.

Employees must earn above the National Insurance lower earnings limit (£520 per month) on average between 31 October 2020 when the CJRS ends and the end of January 2021.

The bonus payments will be made from February 2021.

Further detail about the CJR bonus scheme will be announced by the end of July.

Kickstart Scheme for 16-24 year olds

The scheme will pay employers to create new jobs for 16-24 year olds at risk of long-term unemployment.  Funding will cover 100% of the National Minimum Wage for 6 months, provided the jobs are new and offer 25 hours per week of work, with no cap on the scheme.

Apprentice Bonus Scheme

For the next six months, apprenticeships will also be supported by bonuses for businesses. Employers will get a payment of £2,000 for each new apprentice they take on under the age of 25 – employers taking on apprentices aged over 25 will get £1,500.

Hospitality and Tourism Industry Assistance

VAT on food and accommodation is to be cut from 20% to 5% from 8 July 2020 to 12 January 2021.

In addition throughout the whole of August 2020, from Monday to Wednesday, each week, meals at participating businesses will be 50% off, up to a maximum of £10 per head for everyone via “eat out to help out” vouchers.  Businesses will be able to register for the scheme through a website launching on Monday 13 July 2020.  Businesses should have their money back within 5 working days of the claim.  The scheme only applies to food.

Stamp Duty

To assist the Housing Market, the Stamp Duty threshold is raised for the purchase of a main home to £500,000 (from £125,000) from 8 July 2020 until 31 March 2021.

In his statement, the Chancellor sounded a warning ahead of the Budget and spending review this autumn, stating that the government “must and will” put public finance back on a stable footing.  We will have to wait and see what this will entail, but funds to balance the necessary spending to cope with the Coronavirus, will be needed.