Economy rebuild measures announced

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Economy rebuild measures announced

The government today announced what they refer to as their next step in rebuilding the economy.
Their focus is very much around preventing unemployment whilst gradually stopping the furlough scheme, boosting the hospitality sector and kick starting the housing market.
The measures announced are:

Furlough bonus

£1,000 bonus for keeping furloughed staff until January 2021 – Employers who have furloughed staff up until June 2020 will be given a £1,000 bonus per employee in January 2021 if the staff return to full time work until January 2021 without using the furlough scheme.

Apprentice incentives

The government will pay £2,000 for every apprentice employed and will pay an additional £1,500 if the employee is over 25 years of age. There is a maximum claim of 10 staff. £1,000 will be issued for traineeships.

Kickstart scheme

The government will pay 100% of the wages (national minimum wage) for each employee aged between 16 and 24. This applies for anyone who is currently unemployed and for up to 25 hours per week for a 6 month placement.

Stamp Duty Holiday

Stamp Duty Land Tax has been reduced temporarily to 0% for the first £500,000 (currently £125,000). This will save an average of £4,500 for people moving home, with some saving as much as £15,000. The scheme runs for the next 6 months.

Eat out to help out scheme

A 50% discount on Monday-Wednesday meals during August in restaurants (those that apply for the scheme) up to a maximum of £10.

5% VAT on qualifying hospitality

VAT currently charged at 20% on hot food, accommodation, and attractions has been temporarily reduced to 5% (starting 15 July 2020 and ending 12 January 2021)

Over the coming days and weeks, the government will release more information on these and how some of the measures will be applied in practice.

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