In an attempt to boost the economy and encourage businesses and workers to get back to winning ways, the Chancellor Rishi Sunak has revealed a mini-budget.
The Summer Statement is full of support for business owners – that you need to know about moving forward!
We’ll explore the six big announcements below.
1. Big VAT Cuts Have Arrived
In order to support hospitality and tourism the Chancellor has announced that VAT on food, accommodation and attractions will be cut.
The VAT rate was at 20%, however this figure will now be just 5%.
This new 5% VAT figure will be in place until 12th January 2021, and will cost the government £4 billion.
2. Get Paid To Bring Back Furloughed Workers
The furlough scheme has helped the UK to avoid a wave of job losses during the coronavirus pandemic.
The Chancellor now wants to offer businesses an incentive to keep those furloughed workers employed as things start returning to normal.
This means that businesses will receive £1000 for every worker who was furloughed, and has since been brought back by the company. This must happen between now and January 2021.
Reports suggest that 9 million workers have been furloughed, so this would effectively cost the government a maximum of £9billion if they all returned to work.
3. Get Paid To Take On Trainees & Apprentices
In an effort to ensure that young people are offered work in the coming months, Sunak has also announced multiple incentives for employers.
This first is that employers will be paid £1000 if they take on new trainees, and £2000 if they hire young apprentices.
The announcement has also been opened up for apprentices ages 25+. Businesses will get £1,500 if they hire apprentices in this age bracket.
4. 50% Off At Restaurants For All
In August everyone will be able to enjoy 50% off on a meal out at every restaurant on Mondays to Wednesdays.
This discount will be capped at £10 per head, but is the Chancellor’s big push to encourage people to support restaurants and help save jobs.
This support has been called “Eat out to help out” which we think it’s quite fitting!
5. Stamp Duty Cut
Houses that cost £500,000, and less, will no longer be subject to stamp duty, the Chancellor has revealed.
The big move comes into immediate effect, and will last until 31st March 2021.
This means that nearly 9 out of 10 people buying a home this year will not pay any stamp duty at all on their purchase – saving each homebuyer on average £4,500.
6. Get Paid To Hire 16-24’s In New Roles
This is the second scheme to help young people get into employment.
The new scheme will see the government pay employers to create new jobs for anyone who is 16-24 and at risk of long-term unemployment.
The role must be at least 25 hours per week, and pay the minimum wage or above.
Rishi Sunak’s goal is to get more young people into employment and it will be called the ‘Kickstart Scheme’.
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