Summer Statement – key points

 

 

 

 

 

 

 

 

The Chancellor has just delivered his Summer Statement; the key announcements include:

 

Job Retention Bonus Scheme

A new £9bn job retention bonus was announced - if an employer brings back a furloughed employee and keeps them in the job to January, then the Government will pay a £1,000 bonus per employee.

 

Kickstart scheme

The scheme will pay to create jobs for any 16-to-24-year old "at risk of long-term unemployment" with initial government funding of £2bn, but no cap has been set. It will be available to any employer of any size, with applications opening next month.

 

The jobs must be "decent jobs" granting employees a minimum of 25 hours of work per week, paid at the National Minimum Wage, set at £4.55 for those aged under 18, £6.45 for those aged between 18 to 20, and £8.20 for those aged between 21 and 24. The government will also pay employer overhead costs, expected to include pension contributions.

 

Stamp Duty holiday

The Chancellor announced a stamp duty holiday to reinvigorate the housing market. The change will take effect for those buying houses valued up to £500,000 and will last until 31 March 2021. The new discount comes into force immediately. 

As a result of the change, nine out of ten buyers will pay no stamp duty at all.

 

VAT cut for hospitality

The hospitality sector, including food (and non-alcoholic drinks), accommodation and attractions, will see VAT cut from 20% to 5% from 15 July 2020 until 12 January 2021.

 

Apprenticeships

Apprenticeships will be supported by bonuses for companies. Firms will get a payment of £2,000 for each apprentice they take on. Companies taking on apprentices aged over 25 will be given £1,500.

 

Green investment

A £3 billion green jobs plan was announced - £2 billion in grants for homeowners to make homes more energy efficient and £1 billion to improve efficiency of public sector buildings.