Some quite interesting announcements in today’s summer statement from Chancellor Rishi Sunak, mainly aimed at keeping unemployment down and supporting tourism and leisure;
Hospitality;
- Six month VAT cut for restaurants, hotels and attractions from 20% to 5% from 13th July to 12 January 2021. This will include food and non-alcoholic drinks in restaurants, pubs and cafes as well as hot takeaway food.
- There will also be a discount on eating out from Monday to Wednesday throughout August. The scheme offers 50% discount for every diner up to £10 a head at participating restaurants, pubs and cafes.
Furloughed Staff;
- A one-off £1,000 payment to employers for every furloughed employee who is retained to the end of January 2021. To be eligible, those employees will need to earn at least £520 per month until the end of January.
Support for Young Workers;
- £2,000 grant for employers per apprentice under 25 hired, £1,500 for those over 25 for six months starting 1 August (in England)
- £1,000 grant per trainee for employers who take on new trainees aged 16-24 in England, aiming to triple trainee numbers.
- Extra funding to support additional study support for 18-19 years olds in England unable to find work.
Stamp Duty and Green Homes
- The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000. This applies from 8 July until 31 March 2021.
- Before the stamp duty holiday, if you bought a house for £275,000, for instance, the stamp duty you’d have paid would have been £3,750. That’s based on 0% on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the final £25,000 (£1,250).
- There will also be a grant of up to £5,000 per household for projects to make homes more energy efficient in England. It will match owners or landlords’ spend, £2 for £1 for most homes. The grant will be up to £10,000 per household fully funded for low-income households.