Summer Budget

08 Jul Rishi to the rescue – Summer budget

The chancellor has just released details of the governments summer budget.   The main headlines of this:

Housing market

  • An emergency stamp duty holiday to help revive the property market. Homebuyers will be temporarily exempt from paying the tax for the first £500,000 of any property price, saving them an average of £4,500. Whilst this will benefit many, any first-time buyers or those with low deposits may still struggle with mortgage approval
  • The second home surcharge of 3% will still apply

Help for hospitality

  • VAT on food, non-alcoholic drink, accommodation, and attractions has been cut from 20pc to 5pc from next Wednesday – 15th July to January 12th 2021
  • Every Briton will be given an “eat out to help out” discount. Meals eaten at any participating business Monday to Wednesday in the month of August will be 50pc off at up to £10 per head. Businesses will reclaim the cost of this back from the government

Jobs and training

  • The government will pay businesses a £1,000 job retention bonus for every furloughed worker that is brought back. They need to be paid at least ££520 per month on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021. Further detail about the scheme will be announced by the end of July.
  • Payments for employers who hire new apprentices – The government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18-year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.
  • A new £2bn Kickstart Scheme with government-subsidised jobs for unemployed young people and employers will be able to offer a six-month placement for people aged between 16-24. The Treasury will cover 100pc of the National Minimum Wage for each young employee for up to 25 hours a week with firms able to top up the worker’s pay.

Green Energy

  • Homeowners can benefit from £2bn of grants to pay for “green” upgrades to make their houses more energy efficient. Vouchers worth up to £5,000 will be issued while poorer households could get up to £10,000 to make the upgrades, such as loft and wall insulation

Further details on the above will be released by the government in the coming days. 

If you would like any further information on the above please contact us.