Chancellor's Statement - A Summary

This afternoon (8 July) saw the Chancellor deliver his Summer Statement which, as anticipated, included a number of measures designed to both supplement existing Coronavirus support mechanisms and bolster the economy as we seek to emerge from the previous few months.

There is detail to follow in almost all cases which we’ll of course expand on as and when it is released, however in summary the main announcements include:

Job Retention Bonus

The government have announced that a one-off payment on £1,000 will be made to businesses for each furloughed employee that returns to work and remains in continuous employment until at least 31 January 2021.

The bonus applies to all employees whose wages exceed the Lower Earnings Limit (£520 per month) and payments will be made in February 2021.

Further details of the scheme are expected to be available towards the end of July.

Stamp Duty

Thresholds for stamp duty on residential property acquisitions (by individuals and companies) between today and 31 March 2021 have been revised as follows:

Up to £500k – 0%

£500k - £925k – 5%

£925k - £1.5m – 10%

Above £1.5m – 12%

Additional property acquisitions will continue to attract the 3% surcharge applicable to the rates above, and the special rules available to first time buyers (i.e. relief for the first £300k) are superseded by these new rules for the duration of the measure.

Hospitality VAT Reduction  

From 15 July until 12 January 2021 a reduced rate of 5% will apply to supplies of food and non-alcoholic drinks by restaurants, pubs, bars, cafes and similar.

This will also apply to the supply of accommodation by hotels and similar, and to admission to attractions in a bid to stimulate usage and therefore stimulate employment.

We expect further guidance on these measures in the coming days.

Eat Out to Help Out

On Mondays to Wednesdays throughout the month of August the government will offer a 50% discount of up to £10 per person against eat-in meals and non-alcoholic drinks at qualifying and participating establishments.

Kickstart Scheme

The Kickstart Scheme is a £2bn fund intended to cover the cost of National Minimum Wage (plus associated Employers’ NI and pension obligations) for employment of those aged 16-24 currently in receipt of Universal Credit and deemed at risk of long-term unemployment.

The scheme will last 6 months (from a date TBC) and up to 25 hours per week will be funded.

Apprenticeship Bonus

Employers that take on apprentices under the age of 25 between 1 August 2020 and 31 January 2021 will receive a bonus payment of £2,000 per apprentice.

For those over 25 employers can receive £1,500.

These are in addition to the existing £1,000 payment offered by the government for the taking on of 16-18 year-old apprentices and those ages under 25 with an Education, Health and Care Plan.  

Green Homes Grant

The government has announced a £2 billion Green Homes Grant providing at least £2 for every £1 spent by homeowners and landlords to make homes more energy efficient, capped at £5,000 per household.

The scheme will also fully fund efficiency measures for those on low incomes of up to £10,000 per household.

If you have any questions regarding this or anything else please get in touch, and for regular updates, announcements and news please check our website (www.dsaprospect.co.uk) and make sure you’re following our LinkedIn page: https://www.linkedin.com/company/dsa-prospect-ltd