Summary of Today’s Budget Announcement

The Chancellor, Rishi Sunak, has announced a package to kickstart the economy’s recovery, pledging to “protect, support and create jobs” and get pubs and restaurants “bustling again”. Here is our summary of the main points of today’s mini-budget:

Housing market
Effective immediately, an emergency stamp duty holiday has been unveiled 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 and up to £15,000. This will run until the end of March 2021.

Jobs and training
With the furlough scheme ending in October, it was announced that Businesses will be paid a £1,000 job retention bonus for every furloughed worker that is brought back and employed until the end of January 2021.

A new £2bn Kickstart Scheme will create subsidised jobs for unemployed young people and employers will be able to offer a six-month placement for people aged between 16-24.

£111m will be invested to triple the number of traineeships with businesses offered a £1,000 per trainee payment.

For the next six months, the Government will pay businesses up to £2,000 for every new apprentice under 25. It will also pay £1,500 for every new apprentice above 25 hired.

Environment
Homeowners can benefit from £2bn of grants to pay 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.

Up to £40m will be provided for a Green Jobs Challenge Fund to create 5,000 jobs at environmental charities and public authorities.

Hospitality
VAT on food, non-alcoholic drinks, accommodation and attractions has been cut from 20% to 5%.

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 50% off at up to £10 per head.

Obviously, first and foremost, we want to avoid a second spike in Covid-19 infections but we think that today’s announcement is a welcome boost, both for businesses and the country as a whole.

For more information on today’s budget, please visit: https://www.gov.uk/government/organisations/hm-treasury