Chancellor's summer statement

Well, you may have seen last night that the Chancellors’ summer statement was announced, here is a brief summary ….

Furlough bonus

He introduced the Job Retention Bonus. This is going to be a one off payment to employers that have used the corona virus job retention scheme.

The bonus will provide additional support to retain employees. The employer will receive £1000 for each furloughed employee who remains continuously employed, until 31 January 2021

To be eligible employees will need to be earning at least £520 per month in November, December and January and will have had to be furloughed by the employer at any point throughout the job retention scheme.

Employers will be able to claim this from February 2021.

Eat Out to Help Out

He also introduced the “Eat out to help out” scheme.  Something which has never been tried out in the UK before.

During August diners will get 50% off on meals and non alcoholic drinks, Monday to Wednesday, up to £10 per person when eating at participating restaurants, cafés, pubs or other eligible businesses.

These establishments can register for the scheme from Monday.

VAT cut for the hospitality industry

From 15th July to 12th of January 2021 the UK Government will cut the VAT on any eat in or hot takeaway food and non-alcoholic drinks, at restaurants etc, from 20% to 5%.

This reduction will also apply to accommodation in hotels, Bed and Breakfasts, campsites and caravan sites as well as attractions like cinemas, theme parks and zoos.

Stamp Duty Land Tax (SDLT) threshold increased

He also increased stamp duty threshold in England and Northern Ireland from 125,000 to 500,000 with immediate effect, and this will run until at least the 30th of March 2021.

Kickstart Scheme to help the young

The Chancellors’ summer statement also unveiled a Kickstarter scheme. This will be designed to help young people who’ve been hit by the fall in the job market during Coronavirus, from £2 billion funded programme which will go to create six months work placements, with a minimum of 25 hours per week for people under 25.

The application process for the kickstart grant opens next month, with the “kick starters”, hopefully starting jobs from Autumn.

He also wanted to encourage new apprenticeships, so the government will contribute £2,000 per apprentice under 25 and also receive a £1,500 bonus if they hire apprentices over the age of 25.