Chancellor Summer Statement £30bn Mini Budget Summary

A £30 billion mini budget has been announced by the Chancellor Rishi Sunak to help the country come through the coronavirus crisis.

Job Retention Bonus

The Furlough scheme will be replaced with a new job Retention Bonus.  Employers that take back their staff that have been furloughed, will be paid £1,000 bonus per employee if they are employed through to January 2021 and are paid at least £520 on average a month.

Trainees and Apprenticeships

A kickstart scheme paid directly to employers to create “decent new jobs” for 16-24 year old’s that are at risk of long-term unemployment and provide training and support to find them a permanent job, in return the Government will pay the young people’s wage for 6 months.

Employers will be paid £1,000 to take on trainees and up to £2,000 to hire young apprentices.

VAT cut for the Hospitality Industry

From 15^th July 2020 – 12^th January 2021 - VAT on food, accommodation and attractions will be reduced to 5% from 20%.

Green Deal

A £2 billion Green Homes Grant providing vouchers to help landlords and homeowners make their properties more energy efficient.

Eating Out

An Eat Out to Help Out discount to encourage people back into restaurants, cafes, and pubs. 

Businesses eating out during August from Monday – Wednesday will have 50% off, up to a maximum of £10 per head for everyone.

Businesses can claim the money back into their bank account within 5 working days.

Stamp Duty

Stamp duty will be abolished on transaction below £500,000 until 31^st March 2021 with immediate effect.  This will apply to all transactions but 2nd home and buy to let purchases will still pay the additional 3% stamp duty surcharge but not the main stamp duty rate.

Summary

The package will cost up to £30 billion and add to the amount the Government has been borrowing during the pandemic, no announcement was made regarding new tax and revenue raising measures.