Skills and young people were a key focus of the Chancellor’s £30 billion package of measures in a Summer Statement designed to get the economy moving by protecting, supporting and creating jobs. As a leading firm of accountants in Staffordshire we are ideally placed to advise you on how to keep your business running, post Covid-19. Here is a summary of the key measures:
Job Retention Bonus
For every worker that a business brings back from furlough and employs between November and January 2021 the government will pay a £1,000 bonus per employee. The qualifying condition is that employees must be doing ‘decent work’ and be paid at least £520 on average per month, the equivalent of the NI lower earnings limit. The package could cost as much as £9 billion. Payments will be made after the bonus scheme finishes from February 2021 and further details are expected by the end of July.
The Chancellor also unveiled a £2 billion programme to help young people aged 16-24 who are at risk of being long-term unemployed. The government’s investment will create six-month work placements with a minimum of 25 hours per week and will also cover overheads. To qualify for the funding employers must create additional jobs and pay workers at least the National Minimum Wage. Businesses can apply for grants from August with the new jobs available from the autumn.
The government is encouraging businesses to create new apprenticeships and will contribute £2,000 per apprentice. Firms will also receive a £1,500 bonus if they hire apprentices aged 25 or over.
From July 15 until 12 January 2021 VAT is reduced from 20% to 5% on food, accommodation and attractions. The 4bn investment is applicable to food and non-alcoholic drinks plus accommodation and admissions to attractions. It aims to boost pubs, hotels, restaurants, zoos, cinemas, theme parks and campsites by securing 2.4million jobs.
A £1 billion investment will facilitate the recruitment of coaches at Job Centres to help people who have lost their jobs due to Covid-19 get back to work.
Stamp Duty holiday
The Chancellor has good news for homebuyers, cutting stamp duty to boost the property market. The first £500,000 of all property sales, up from £125,000, will be excluded from the tax for 9 months until 31 March 2021. The measure is expected to bring the average stamp duty bill down to £4,500 and will cost around £3.8 billion.
Green homes grants
In a £2 billion scheme, grants of up to £5,000 and £10,000 will be available to help make homes more energy efficient. A further £1billion will go on improving public buildings. The objective is to reduce emissions by upgrading more than 600,000 homes in England and create up to 140,000 ‘green’ jobs in refurbishment.
Eat Out to Help Out
In a bid to save 1.8 million jobs, a discount scheme will enable people to get a 50% discount – worth £10 per person – on meals in restaurants, cafés, pubs or eligible businesses serving food from Mondays to Wednesdays during August. To participate in the scheme businesses need to register online from July 13 and apply in August.
For further information on the latest government support for business visit: https://www.gov.uk/government/news/rishis-plan-for-jobs-will-help-britain-bounce-back
For advice on getting your business back up to speed post-lockdown, call us on 01785 243276.