Chancellor Rishi Sunak has delivered a summer statement, outlining his ambitions for a recovery from the economic harm done by the virus.

Here are the key points.

Job Retention Bonus

Employers will receive a one-off payment of £1,000 for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme (October 2020) and the end of January 2021. Payments will be made from February 2021. Further detail about the scheme will be announced by the end of July. 

Kickstart Scheme 

A £2 billion fund to create high quality 6-month work placements aimed at 16-24 year olds who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic 

High quality traineeships for young people  

The government will fund employers who provide trainees aged 16-24 with work experience, at a rate of £1,000 per trainee.

Payments for employers who hire new apprentices

The government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.

Eat Out to Help Out

This will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50% discount.

Temporary VAT cut for food and non-alcoholic drinks

From 15 July 2020 to 12 January 2021, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.

Temporary VAT cut for accommodation and attractions 

From 15 July 2020 to 12 January 2021, the reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.

Temporary Stamp Duty Land Tax (SDLT) cut

The Nil Rate Band of Residential SDLT, in England and Northern Ireland, will be increased from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021 

Green Homes Grant 

The Green Homes Grant, will provide at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household. For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household.

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