The Chancellor Rishi Sunak has announced some unprecedented measures to help kick start the economy following the impact of coronavirus. Below are the main points discussed within the chancellors speech.
Temporary stamp duty cut
Zero stamp duty will be payable on properties worth up to half a million pounds, saving buyers an average of £4,500 per transaction. The temporary stamp duty cut will begin immediately and last until March 31 2021. The current stamp duty threshold is £125,000 with a rate of 2 per cent on properties up to £250,000 and 5 per cent on the portion of the cost thereafter.
VAT rate slashed to 5 per cent for the hospitality sector
From next Wednesday VAT rates will be reduced from 20 per cent to 5 per cent on all sales of hot food, accommodation and attractions. The new level will remain in place for a total of six months and cost the exchequer about £4 billion. The cut will also cover entertainment venues like cinemas and zoos. The chancellor said around 150,000 businesses would benefit.
Eat out to help out scheme
Anyone who is going to eat in a restaurant or pub on a Monday, Tuesday or Wednesday in August will be entitled to up to 50% off their bill up to a maximum of £10 per customer. Businesses will then be able to claim this money back from the government within five working days.
£9 billion job retention scheme
Companies who bring back furloughed workers will be paid a £1,000 bonus per employee as long as they are paid a minimum of £520 on average each month between November and January. According to the Government if all furloughed employees were brought back into work this would cost the Treasury £9 billion.
£2 billion “kickstart” work placement scheme
Up to 300,000, 16 to 24-year-olds will be funded by the government for six-month work placement schemes worth around £5,500. Businesses will receive a total of £1,000 per employee they take on, for a minimum of 25 hours per week at the level of the national minimum wage.
£2,000 apprenticeship bonus
Firms will be paid a bonus of £2,000 for every new apprenticeship they create in the next six months. There will be an additional bonus of £1,600 for every apprentice who is hired over the age of 25 years of age. There will also be a £1,000 bonus for each new trainee, aged 18/19, brought in by companies.
£2 billion green homes grant
Households will be able to apply for vouchers worth up to £5,000 for home insulation. This will cover up to two thirds of the total cost of the work. For lower income households, grants of up to £10,000 will be available covering 100% of the work.