Summary of government financial support

Following the announcements yesterday (8 July 2020) by the Chancellor, here is a brief summary of the main points.

Following the announcements yesterday (8 July 2020) by the Chancellor, here is a brief summary of the main points.

Support for jobs

Job Retention Bonus: a one-off bonus of £1,000 for each furloughed employee who remains continuously employed through to 31st January 2021. Employees must earn above £520 per month on average between November 2020 and January 2021. Payments will be made from February 2021.

Kickstart scheme to create fully subsidised jobs for individuals aged 16-24 claiming universal credit who are deemed to be at risk of long-term unemployment. Funding will be available for each six month job placement covering 100% of the National Minimum Wage for 25 hours a week plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. Employers can top up the wages.

Apprentice bonus employers will be given £2,000 for each new apprentice hired under the age of 25 and a £1,500 payment for each new apprentice aged 25 and over. This is in addition to the existing £1,000 payment for the new 16-18 apprentices (or for the under 25s if they have an Education, Health & Care Plan).

Support for hospitality

A 50% discount of up to £10 per head will be given to any diner on their meal at any participating eligible food service establishment. The discount can used unlimited times and will be valid Monday to Wednesday on any eat-in meal including non-alcoholic drinks for the entire month of August 2020. Participating establishments will be fully reimbursed for the 50% discount.

Temporary VAT cut from 20% to 5% rate for food and non-alcoholic drinks from 15th July 2020 to 12 January 2021 from restaurants, pubs, bars, cafes & similar premises across the UK.

Temporary VAT cut from 20% to 5% for accommodation and admission to attractions in the UK from 15th July 2020 to 12th January 2021.

Support for housing

There will be a temporary Stamp Duty Land Tax cut from 8th July 2020 to 31st March 2021. The Nil Rate Band of Residential SDLT in England and Northern Ireland will increase from £125,000 to £500,000. The 3% surcharge for additional properties remains though.

A new Green Homes Grant will be available to provide £2 for every £1 homeowners & landlords spend to make their homes more energy efficient with up to £5,000 per household. For those on the lowest income the scheme will fully fund energy efficiency measures of up to £10,000 per household.

If you have any questions about the above then of course please do get in touch.