Chancellor Rishi Sunak announced on 8th July 2020 a range of measures in his Summer Mini-Budget to help the UK economy recover from coronavirus.
THE KEY POINTS
- Stamp duty threshold raised to £500,000 until March 2021
The Chancellor announced a temporary increase in the threshold for stamp duty – raising it from properties worth £125,000 to those worth £500,000 – to revive the property market.
- Hospitality VAT cut to 5 per cent
VAT on food, non-alcoholic drinks, attractions and accommodation has also be cut from 20 per cent to 5 per cent. This comes into effect from 15th July 2020, and will last until 31st January 2021 initially.
In an attempt to get customers back into restaurants, bars and cafes as the lockdown eases, the chancellor announced everyone in the country will be eligible for “Eat Out to Help Out” vouchers.
Meals eaten at businesses participating in the scheme, which will operate on Monday-Wednesday in August, will be 50 per cent off per person (maximum of £10 discount per person).
- End-of-furlough £1000 bonus
There will be a £1000 bonus paid to businesses for each furloughed staff member brought back to work through to January.
We hope that that this will include directors, as well as employees, and await to see the additional criteria.
- £2bn for youth employment
The Chancellor announced the government’s new £2 billion Kickstart Scheme, aimed at creating thousands of job placements for young people aged between 16-24.
This is expected to help UK Mainland, however the NI Executive will be allocated additional funding, to help initiate their own Scheme.
- £3bn green infrastructure budget
The Chancellor announced a £3 billion green jobs plan, £2 billion going to homeowners and landlords willing to improve the energy efficiency of homes in a bid to save money and create local jobs.