As the United Kingdom is entering the second phase of the government’s economic response to the coronavirus outbreak, the chancellor delivers his summer statement.
Here is a summary of the key points.
∙ Firms will be encouraged to retain furloughed staff by being provided with a so-called ‘job retention bonus’: a one-off payment to employers for every furloughed employee they retain to the end of January 2021.
∙ Support to firms offering apprenticeships will be provided. They will get a payment of £2,000 for each apprentice they take on.
∙ To support the industry, the value-added tax will be cut from 20% to 5% on food, accommodation and attractions from 15 July to 12 January 2021.
∙ Food and non-alcoholic drinks in restaurants, pubs and cafes will be affected.
∙ Hot takeaway food will be covered.
∙ Accommodation in hotels and B&Bs will be affected.
∙ The cuts will cover admission to attractions (such as cinemas and theme parks).
∙ The stamp duty threshold in England and Northern Ireland will increase with immediate effect to £500,000 until 31 March.
∙ The following rates will apply for the duration of this period:
|Property value||Stamp duty payable by first-time buyers|
|up to £500,000||0|
|£500,001 to £925,000||5%|
|£925,001 to £1.5m||10%|
∙ According to Rishi Sunak, this will help home buyers to save £4,500 on average.
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