An unprecedented Summer Statement was delivered today by the Chancellor of the Exchequer, Rishi Sunak.
Although the economy is starting to open up gradually after its pandemic-enforced quarantining, the chancellor’s statement is an attempt to stem the damage from a forecast 14% slump in GDP this year, according to the Bank of England, and a potential rise in the unemployment rate from 3.9% to 15%, according to the Organisation for Economic Cooperation and Development.
About the Budget
This snapshot is not an in-depth analysis but aims to give you a quick summary of the key points announced by the Chancellor from the dispatch box.
More details are available from GOV.UK
Main Headlines from the Speech
- Extraordinary measures introduced to offset effects of Covid-19 virus
- £160bn spent by Government in addressing the Corona virus crisis
- Economy contracted by 25% in first six months of year
- Government will not be defined by the crisis, but by their response to it
- Three point strategy to support, protect and retain jobs
- Furlough scheme to be wound down gradually from October
- £1,000 bonus payable to employers for retaining furloughed employees
- ‘Kickstarter’ job package for 16-24 year olds
- Government subsidy worth up to £6.5k for each employee taken on under Kickstart Scheme
- £2,000 bonus for employees taking on trainees
- £1,500 bonus for apprentices over age 25
- Companies able to apply for job subsidies within one month
- Additional funding for the National Careers Service
- Help for long term unemployed
- £1.6bn additional funding for DWP
- £3bn scheme to make homes and buildings more environmentally friendly
- £2bn Green Homes Grant to make homes energy efficient – up to £5k per household
- £1bn to improve energy efficiency of public buildings
- Property transactions fell by 50% in May
- Stamp duty threshold raised to £500K (from £125K) until 31/3/21 effective immediately.
- Predicted 9 out of 10 people will pay no SDLT this year.
Hospitality and Tourism
- 1.8 million people employed in the hospitality and tourism sector. 1.4million workers in the sector have been furloughed. 80% of sector stopped trading in April
- VAT on food, accommodation and attractions to be cut to 5% from 15 July until Jan 12th 2021
- August special – ‘Eat out to help out’ – 50% discount available Mon to Weds worth up to £10/head (at participating establishments).