Category: Budget

Summer Economic Update 2020: The Highlights

08 Jul 2020

Rishi Sunak presented his Summer Economic Update on Wednesday 8 July 2020. In his speech, he stated that the government has taken decisive action to protect the UK economy but people are anxious about losing their job and the rise in unemployment.

The Chancellor’s statement was therefore presented as a 'Plan for Jobs'. The policy measures set out a three-point plan:

  1. first - support people to find jobs
  2. second - create jobs
  3. third - protect jobs

Our summary of the measures follow the three-point plan. In addition, we explain some of the other measures that are still operating to support businesses and their employees - in particular the second phases of the Coronavirus Job Retention Scheme and the Self-employment Income Support Scheme. Both of these measures will continue to provide support to businesses and employees. 

Highlights from the statement

  • A £1,000 Job Retention Bonus will be introduced when the Coronavirus Job Retention Scheme ends to encourage employers to keep on employees that have been furloughed

  • A new Kickstart Scheme will cover employers’ costs for new six-month work placements for trainees aged 16-24

  • A £1,000 payment will be made to employers for each 16-24-year-old they take on for work placements and training

  • Employers who hire new apprentices will receive payments of up to £2,000

  • A temporary cut to Stamp Duty Land Tax on residential property, increasing the zero-rate band to £500,000 and saving purchasers up to £15,000

  • VAT will be cut temporarily from 20% to 5% for restaurant, food, accommodation and attractions businesses

  • An ‘Eat Out to Help Out’ Scheme will offer 50% meal discounts during August, which businesses can claim back from the government

Download our report below to read more about the announcement and what the changes mean for you or your business.

For further advices on any of the announcements made, contact your relationship partner.

Download report

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