Chancellor Rishi Sunak announces plan to revive UK economy

In the wake of the coronavirus pandemic the UK economy has slumped, with many businesses feeling the impact of the lockdown. Today the Chancellor, Rishi Sunak, announced a variety of measures which are designed to boost the economy, by protecting, supporting and creating new jobs. To help you understand what this means for your business and daily life, we take a look at the key points from this Summer Statement.

Jobs Retention Bonus announced

The Chancellor has announced a job retention bonus of £1,000, which will be available to employers for each employee which returns to work after being furloughed. The business must employ them until January and the eligible employee must be paid at least £520 per month until January. The government has confirmed that the current furlough scheme will end in October, so this additional support will be a useful tool for many businesses which are looking to prevent job losses.

Kickstart Scheme unveiled

In addition to supporting businesses to bring furloughed workers back into the workplace, the Chancellor has also announced the Kickstart Scheme which aims to create new jobs. The scheme is designed to provide work placements for young people aged between 15 and 24 years old, which are facing long-term unemployment. Businesses will be paid by the treasury to provide jobs of at least 25 hours per week. The entire cost of employment will be covered to the value of minimum wage for a total of 6 months.

Employers will be paid £1,000 to take on new trainees and an additional £100m will be provided to colleges for additional places on Level 2 and Level 3 courses. If a company provides jobs to people on apprenticeship schemes, the government will be providing a payment of £2,000, for apprentices under the age of 25.

£3bn green jobs plan

The Chancellor has announced a commitment to an environmentally friendly economic recovery, with a support package of £3bn. A Green Homes Grant of £2bn will be available to landlords and homeowners to improve the energy efficiency of homes, whilst also creating local jobs. The grants will be available for individual amounts of up to £5,000 and will cover two thirds of the total cost. In addition, £1bn will be made available to public sector buildings which are looking to improve energy efficiency.

Temporary stamp duty holiday

A temporary stamp duty holiday will apply to the first £500,000 of property sales in both England and Northern Ireland, until 31 March 2021. This will effectively provide a tax-cut to first-time buyers, which are looking to buy a property valued at more than £300,000, and other purchasers spending more than £125,000.

VAT rate cut for hospitality and tourism industry

Businesses within the hospitality and tourism industry will benefit from a temporary VAT cut, which reduces the rate from 20% to 5%. This reduction will begin on 15 July and will run until 12 January, in an effort to increase customer flow.

Eat Out to Help Out Scheme

In a further effort to boost the hospitality sector, Rishi Sunak has announced a 50% meal discount for adults and children. The scheme will be available for participating restaurants between Monday and Friday, up to a maximum of £10 per head. The difference in price will then be paid to the restaurant within 5 working days.

With a potential recession looming, these measures will provide much needed support to many businesses. Despite these schemes, we understand that many businesses will still be facing financial difficulties. Here at BusinessComparison, it is our aim to help your business find the best deals on everything from insurance and utilities to loans and credit cards. By helping you compare your options, we can help your business access the financial support it needs during these unprecedented times.

Kerry Fawcett