A series of measures to help the UK’s economic recovery by assisting struggling businesses and protecting jobs has recently been announced by The Chancellor of the Exchequer, Rishi Sunak.
The Chancellor viewed this as the second of three phases to address the impact of the corona virus to our economy. The various support packages granted by the government including the Self-Employed Income Support Scheme and Job Retention Plan for furloughed employees made up the first phase. Rebuilding through a budget and spending review this coming autumn is what phase three will focus on.
So how does phase two affect you?
A one-time of £1,000 will be paid to employers for every furloughed staff member they retain, to be paid in February 2021. The employee must be continuously employed between November 2020 until 31st January 2021 and earn an average of £520 per month.
A Kickstarter Scheme to help employers who create jobs for 16-24 year olds who are claiming Universal Credit and at risk of long term unemployment. The scheme will be funded up to 100% of the National Minimum Wage for each employee.
These created jobs must be at least 25 hours per week. The funding will cover each 6-month job placement and the employer has the option to top up their staff’s wage if they wish.
The government will also pay employers who recruit new apprentices for the next 6 months. The government would give companies £2,000 each to to hire apprentices, £1,500 if they hire apprentices over 25. Paid per apprentice over 6 months from 1st August 2020 to 31st January 2021.
This incentive is on top of the £1,000 the Government pays under the Education, Health and Care Plan. Traineeships, sector-based work academy placements, work coaches and the National Careers Service will receive an extra investment.
To help protect more jobs, the government plans to restart the tourism and hospitality sector.
From 5th July 2020 to 12th January 2021 the VAT rate will be reduced from 20% to 5% for food and non-alcoholic drinks in bars, cafés, pubs and related establishments.
Accomodation and admission to amusement sites are included in the 5% VAT rate reduction.
The chancellor also launched an “Eat Out To Help” (EOH) scheme providing 50% discount, up to £10 per person including children, on meals eaten at participating establishments from Monday to Wednesday in August. Eligible businesses need to sign-up in order to make a claim under this scheme.
The chancellor has issued a temporary increase to the Stamp Duty Land Tax (SDLT) limit from £125,000 to £500,000 for England and Northern Ireland residential properties from 8th July to 31st March 2021
This coming September landlords and home owners can apply for a voucher under the Green Homes Grant (GHG) in order to create local jobs and make homes more energy efficient.
This voucher will pay at least two-thirds of the expense of up to £5,000 per household with and even bigger amount of £10,000 for low-income families.