A brief summary of the ‘Summer Statement’ announcements made by Rishi Sunak on 8 July
On 8 July, the Chancellor announced a series of new measures to bolster the economy as lockdown begins to ease. A brief summary of those is set out below. We aim to release more detailed information on these measures, however, please contact us on 01270 530970 should you require further information.
Leisure and Tourism
Diners will get a 50% discount off their restaurant bill during August under government plans to bolster the embattled hospitality sector.
Chancellor Rishi Sunak unveiled the "eat out to help out" discount as part of a series of measures to restart the economy amid the coronavirus pandemic.
The deal means people can get up to £10 off per head if they eat out between Monday and Wednesday.
The discount will not apply to alcohol, but to food and soft drinks up to £10 per person.
The Treasury said the 50% discount can be used unlimited times during August and applies to participating restaurants, cafés, and pubs across the UK.
As he announced the discount, the chancellor said the UK was facing a "unique moment" because of Covid-19, adding: "We need to be creative."
Chancellor Rishi Sunak is cutting the rate of value added tax (VAT) on hospitality and tourism from 20% to 5%, from 15 July 2020 to 12 January 2021.
The cut applies to food and non-alcoholic drinks as well as accommodation and admission to attractions across the UK.
Stamp duty cut
The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000
The cut applies from 8 July until 31 March 2021
It is thought that almost nine out of 10 transactions would be tax-free as a result.
Green homes grant
Up to £5,000 per household for projects is available to make homes more energy efficient in England
- The amount will match owners or landlords' own spend, £2 for £1 for most homes
- Up to £10,000 per household fully funded for low-income households
Support for young workers
"Kickstart scheme": £2bn fund to pay for six-month work placements for 16 to 24-year-olds on universal credit
- Payments cover national minimum wage for 25 hours per week, plus national insurance and pension contributions for Great Britain
- £1,000 grant per trainee for employers who take on new trainees aged 16-24 in England, aiming to triple trainee numbers
- £2,000 grant for employers per apprentice under 25 hired, £1,500 for those over 25, for six months starting 1 August (in England)
Jobs Retention Bonus
Jobs have already been disappearing, therefore, Rishi Sunak's priority was to find ways to create new jobs, and to protect others.
The new Jobs Retention Bonus is a cash payment to employers who bring staff back from the taxpayer backed furlough scheme. This is a significant and potentially very expensive way (for the exchequer) of trying to get people back to work.
Employers who bring staff back to work after they have been at home on taxpayer funded wages will get £1,000 per employee if they are still on the payroll at the end of January.
Hypothetically, it could cost up to £9bn if everyone returns to work.