Today (8 July) Rishi Sunak delivered his summer economic statement – his plan for jobs – which aims to protect, support and create jobs.
He is clear that this plan for jobs, is the next action and not the last action in our recovery. We highlight the main points the Chancellor made below and we will provide more detail as we receive it.
What was in the Plan for Jobs?
- Job Retention Bonus. Employers who bring back a furloughed employee, paying them at least £500 per month from November until January will receive £1,000 bonus per employee.
- Kickstart scheme: The government will pay employers for creating new jobs for 16 – 24-year olds. It will pay the Kickstarter’s wages for 6 months plus a contribution for overheads which could amount to £6,500 for a 24-year-old. Employers can apply to be part of the scheme from August, with the first Kickstarter’s expected to be in position from Autumn.
- Traineeships: the government will pay employers £1,000 to take on new trainees
- Apprenticeships: For the next 6 months, the government will pay businesses £2,000 to hire young apprentices and £1,500 to hire older apprentices, those that are 25yrs and over.
- Green Homes Grant: From September, homeowners and landlords can apply for vouchers to make homes more efficient. Grants for 2/3 of the cost of improvements up to £5,000 per household will be available.
- Stamp Duty Land Tax: The Stamp Duty threshold was raised to £500k with immediate effect. This is a temporary measure effective until 31 March 2021.
- Hospitality & Tourism VAT: VAT rate cut from 20% to 5% from 15 July until 12 Jan 21 for hospitality and tourism sector – including food accommodation and attractions.
- “Eat Out to Help Out” discount: A government backed discount for all. For meals eaten at any participating business, from Monday to Wednesday, a discount of 50% off (to a max discount of £10 per head including children) will be given. Businesses wishing to participate will register on a website from Monday 13 July. Each week in August those businesses can claim the money back with funds in their bank accounts within 5 working days.
Wayne Thomas comments:
“It was encouraging to hear the Chancellor acknowledge the level of anxiety businesses feel about the economy and to see that the government appears to be committed to giving everyone, especially the youngest in the job market, the opportunity for good and secure work. The challenges ahead cannot be underestimated, but the Job Retention Bonus, Kickstarter schemes and trainee and apprenticeship initiatives will encourage business owners to protect and create jobs. The construction sector and the hospitality and tourism sector also received much needed support. We look forward to unpicking the detail.”