The following measures were announced by the Chancellor yesterday.
Job retention bonus
The government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings Limit (£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.
Discount to encourage us to eat out
The government will introduce the Eat Out to Help Out scheme to encourage people to return to eating out. This will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50% discount.
Temporary VAT cut for the hospitality sector
From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK.
Here is what will qualify -food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs
- hot takeaway food and hot takeaway non-alcoholic beverages
- Temporary VAT cut for accommodation and attractions
From 15 July 2020 to 12 January 2021, the reduced (5%) rate of VAT will apply to supplies of certain accommodation and admission to attractions across the UK.
Here is a list of what will qualify
- sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities
Admissions to the following attractions that are not eligible for the cultural VAT exemption:
- amusement parks
- similar cultural events and facilities
Help for estate agents and property buyers
The government will temporarily increase the Nil Rate Band of Residential Stamp Duty Land Tax, in England and Northern Ireland, from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021. (The 3% surcharge will still apply for second property buyers, but it will similarly be 3% all the way to £500,000.)
The government will introduce a new Kickstart Scheme in Great Britain, a £2 billion fund to create 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
9 July 2020