Chancellor’s ‘Plan for Jobs’ to help the UK’s economy recover
On Wednesday 8th July 2020 the Chancellor set out the next 3 step plan to help the economy recover and protect jobs, especially for those under 25.
A Job Retention Bonus is being introduced to help businesses keep furloughed workers on. Employers will receive a one-off bonus of £1,000 for each furloughed employee that is still employed with them on 31 January 2021.
A new £2 billion Kickstart Scheme is being launched to create new, fully subsidised jobs for young people across the country. Those aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible. Funding for each six month job placement will cover 100% of the National Minimum Wage for 25 hours a week.
Businesses will be given £2,000 for each new apprentice they hire under the age of 25. This is 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.
The Chancellor announced a £3 billion green investment package is being introduced that could support around 140,000 green jobs and upgrade buildings and reduce emissions.
As part of this package homeowners and landlords in England will be able to apply for vouchers from a £2 billion Green Homes Grant scheme this year to pay for green improvements such as loft, wall and floor insulation that could save some households hundreds of pounds a year on their energy bills while creating thousands of jobs for tradespeople.
£5.8 billion will be spent on shovel-ready construction projects to get Britain building.
- £1.5 billion for hospital maintenance and upgrades
- £100 million for our local roads network
- £1 billion to start to rebuild schools in the worst condition in England, plus £760 million this year for key maintenance work on schools and FE colleges
- £1 billion for local projects to boost local economic recovery in the places that need it most
- £142 million for court maintenance to repair around 100 courts across England.
The tourism and hospitality sectors are massive employers in the UK and have been severely impacted by the pandemic due to necessary closures to protect public health. 80% of hospitality firms stopped trading in April and 1.4 million hospitality workers have been furloughed – the highest of any sector.
To encourage people to safely return to eating out at restaurants Rishi Sunak, (Chancellor) revealed the Government’s new Eat Out to Help Out discount scheme will provide a 50% reduction for sit-down meals in cafes, restaurants and pubs across the UK from Monday to Wednesday every week throughout August 2020.
The rate of VAT applied on most tourism and hospitality-related activities will also be cut from 20% to 5%. This will support over 2.4 million staff at over 150,000 businesses, helping them recover and reopen after the Covid-19 lockdown. This will give businesses the confidence to maintain their staff, as more people get through the door and business activity kick-starts again.
A temporary increase to the Nil Rate Band of Residential SDLT (Stamp Duty) has been implemented, from £125,000 to £500,000 until 31 March 2021.