08/07/2020 by Andrew Brealey, Brealey + Newbury Accountants 0 Comments
Mini-Budget 2020 summary
The Chancellor's plan to kickstart the economy is set to include a stamp duty holiday, green investment and help for young workers
Help for hospitality
Mr Sunak promised to get pubs and restaurants "bustling again" by announcing a huge VAT cut for the hospitality sector and a landmark 50pc discount for customers.
VAT on food, accommodation and attractions has been cut from 20pc to 5pc, a £4bn boost for the industry, Mr Sunak said.
Every Briton will be given an "eat out to help out" discount. Meals eaten at any participating business Monday to Wednesday in the month of August will be 50pc off at up to £10 per head.
The Chancellor announced an emergency stamp duty holiday to help revive the property market. Homebuyers will be temporarily exempt from paying the tax for the first £500,000 of any property price, saving them an average of £4,500. The increase in the threshold from £125,000 to £500,000 is effective immediately and will run until the end of March 2021.
Jobs and training
Mr Sunak made protecting workers and creating employment the heart of his mini-Budget with up to £30bn set aside for boosting the jobs market.
The Chancellor will pay businesses a £1,000 job retention bonus for every furloughed worker that is brought back and employed until the end of January 2021. If every furloughed worker returns to work, the policy would cost £9bn, Mr Sunak said. Workers must have been continuously employed and earn an average of more than £520 per month in November, December and January.
Mr Sunak unveiled a new £2bn Kickstart Scheme as a key plank of his “Plan for Jobs”. The fund will create government-subsidised jobs for unemployed young people and employers will be able to offer a six-month placement for people aged between 16-24. The Treasury will cover 100pc of the National Minimum Wage for each young employee for up to 25 hours a week with firms able to top up the worker’s pay. Some £111m will be invested to triple the number of traineeships with businesses offered a £1,000 per trainee payment. The grant will be capped at 10 jobs per firm. For the next six months, the Government will pay businesses up to £2000 for every new apprentice. It will also pay £1,500 for every new apprentice above 25. An extra £1bn will be invested in the Department for Work and Pensions to help people get back to work.
Greening the recovery
The Chancellor announced a £3bn package of green investment to help create thousands of jobs. Some £1bn has been set aside to help make public sector buildings greener. Homeowners can benefit from £2bn of grants to pay for “green” upgrades to make their houses more energy efficient. Vouchers worth up to £5,000 will be issued while poorer households could get up to £10,000 to make the upgrades, such as loft and wall insulation.