Mini-Budget to rescue UK Economy?

Chancellor Rishi Sunak has outlined measures in his summer statement to help rescue the UK’s Coronavirus hit economy. In what has been called his ‘Mini-Budget’, the following announcements were made on 8^th July:

He rejected calls to extend the furlough scheme beyond October, saying it would give people "false hope" that they will have a job to return to.
The introduction of a ‘job retention bonus’ that will see employers receive a £1,000 payment from the Government if they bring back a furloughed employee and continuously employ them through to January (providing the employee earns an average of more than £520 per month in November, December and January).
He announced a stamp duty land tax holiday to stimulate the property market. This would exempt the first £500,000 of residential property purchases until 31 March 2021 from the tax. For purchases of second properties where higher rates apply the SDLT rate will be 3% to £500,000.
VAT has been reduced from 20% to 5% on meals, accommodation and attractions from 15 July 2020 until 12 January 2021
Vouchers of up to £5,000 will be made available to individuals to subsidise energy-saving home improvements as part of a wider £3bn plan to cut emissions (and poorer households could get up to £10,000)
For the month of August all UK customers will be able to dine out from Monday to Wednesday for half price, up to a maximum discount of £10 a head. This does not apply to alcoholic drinks.
New apprentice and trainee funding was announced to support and encourage employment for younger people. Businesses will get up to £2,000 to take on apprentices under 25 (or £1,500 for apprentices over 25), and receive £1,000 to take on new trainees (capped at 10 jobs per employer). The Government will also subsidise six-month placements for people aged 16-24, targeting unemployed young people.

The changes announced are intended to give a welcome boost to the economy, targeting the leisure and tourism industries and employment in young people in particular.

As mentioned previously, we were not expecting any significant announcements on tax changes. Tax measures will likely be unveiled in the chancellor’s Autumn Budget.

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