Following on from our most recent live Budget blog, this post outlines the key points from Rishi Sunak’s UK Mini-Budget 2020, which has also been described as his summer statement. The headline news for the housing market is that Chancellor Sunak has announced a temporary Stamp Duty holiday (more on this below).
This blog also highlights a number of other significant updates that were revealed during the Mini-Budget, including:
- VAT reductions for the next months from 20% to 5%
- The Eat Out to Help Out scheme, offering discount vouchers for restaurantgoers
- The Job Retention Bonus with incentives for employers to bring back furloughed workers
- A ‘kickstart jobs scheme’ designed to support jobs for younger people
- The Green Homes Grant (with contributions to energy-saving home improvements).
Temporary Stamp Duty holiday
Chancellor Sunik announced a Stamp Duty holiday. Homebuyers will be exempt from paying the Stamp Duty for a property with a value of up to £500,000. This change is only temporary, however, and Stamp Duty will return to normal as of the 31st March 2021.
VAT temporarily reduced to 5%
VAT is to be reduced for the next 6 months from 20% to 5%. This will apply to a range of goods and services, including restaurants, cafes, pubs, tourist attractions, zoos, attractions, B&Bs and many more. The reduced rate will be introduced on Wednesday 15th July 2020 and will remain until the 12th January 2021.
Eat Out to Help Out
Eat Out to Help Out restaurant discount vouchers will be given to everyone in the UK to use at any participating businesses throughout the whole of August. These vouchers can be used from Monday to Wednesday each week and will entitle you to 50% off your bill up to a maximum of £10 per head.
Businesses will then claim the funds back through a government website, which will be opened from Monday 13th July (check back then for more details, including the URL for the site). Sunak has stated that the funds will be paid directly into hospitality companies’ bank accounts within 5 workings days.
Job Retention Bonus
In order to encourage businesses to bring back their furloughed employees, the Chancellor announced the Job Retention Bonus. This scheme will reward employers with a bonus of £1000 for each furloughed employee who is brought back to work and employed up until at least January 2021.
‘Kickstart jobs scheme’
To support jobs for younger people, the government announced a ‘kickstart jobs scheme,’ which will help fund six-month work placements for young workers aged between 16 and 24 years old. Employers can apply for the scheme from August 2020 – check back here then for more information.
The Green Homes Grant
Homeowners and landlords will be able to apply for the Green Homes Grant, which is designed to make homes more energy-efficient and is expected to launch in September 2020. Vouchers of up to £5,000 will be issued – and low-income households could get contributions of up to £10,000 for improvements such as wall and loft insulations, energy-saving boilers, and double or triple glazing.
Hopefully this post has provided you with all of the information you needed about the UK Mini-Budget 2020. If you’ve got any questions about the issues raised in the summer statement or how we can help your business, we’re always here to help – just get in touch.