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Chancellor's Summer Statement: The six big announcements
8 July 2020, 13:28
Rishi Sunak made a series of big announcements in his Summer Statement as he attempted to get businesses and workers back on track after the coronavirus lockdown. Here is what you need to know.
"Eat out to help out"
During month of August, you will be able to get 50% off a meal out, up to £10 off per head, at every restaurant on Mondays to Wednesdays. The Chancellor said he wanted to encourage people to get back to restaurants and help save jobs.
VAT cuts for the service industry
To support the hospitality and tourism, VAT on food, accommodation and attractions will be cut from 20% to 5% until 12th January next year. The Chancellor revealed this amounted to a £4 billion commitment.
Helping businesses bring back furloughed workers
Employers who bring back a furloughed worker between now and January 2021, will be paid a bonus of £1,000 per employee. If employers bring back all 9 million people to work, then it will cost the government £9 billion.
Kickstart scheme to help young people get jobs
The Chancellor unveiled a new programme to help youngsters get into employment. He told the Commons: "The kickstart scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment." They will have to be new jobs, with a minimum of 25 hours per week at at least the minimum wage.
Helping create traineeships
Rishi Sunak said employers will be paid £1,000 to take on trainees and will also be paid to create new apprenticeships for the next six months. He said: "We'll pay businesses to hire young apprentices, with a new payment of £2,000 - and we'll introduce a brand new bonus for businesses to hire apprentices aged 25 and over, with a payment of £1,500."
Stamp duty cuts
Chancellor Rishi Sunak has announced a cut to stamp duty for houses up to £500,000 effective immediately and to run until 31st March 2021. He said: "The average stamp duty bill will fall by £4,500. And nearly nine out of 10 people buying a main home this year, will pay no stamp duty at all."