Rishi Sunak has today pledged to “protect, support and create jobs” and get pubs and restaurants “bustling again” as he unveiled his ‘Mini-Budget’ to kick-start the economy’s recovery.
We will be examining the detail in the coming days and providing more information, including how the announcements will affect sectors and businesses, but here are the key announcements.
VAT
Mr Sunak has cut VAT rates to stimulate economic activity in the wake of the COVID-19 recession. VAT on food, non-alcoholic drinks, accommodation and attractions has been slashed from 20% to 5%.
He said: “This is a £4 billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs.”
The reduction will apply from July 15 until 12 January 2021.
Stamp Duty Land Tax (SDLT)
The Chancellor announced a ‘stamp duty holiday’ as part of the Government’s COVID-19 recovery plans.
Homebuyers will be temporarily exempt from paying SDLT for the first £500,000 of any property price, saving them an average of £4,500.
The increase in the threshold from £125,000 to £500,000 is effective immediately and will run until the end of March 2021. Those purchasing more expensive homes will also benefit from reduced costs.
Job Retention Bonus
The Chancellor will pay businesses a £1,000 job retention bonus for every furloughed worker that is brought back and employed until the end of January 2021.
To qualify for the grant, workers must have been continuously employed and earn an average of over £520 per month in November, December and January.
Green Investment Package
A £3bn green investment package was announced to help create thousands of jobs. This includes £2bn in grants for landlords and homeowners to improve energy efficiency of homes, up to £5,000 per household. The rest will go towards work improving the energy efficiency of public buildings.
Disclaimer
The information was correct at time of publishing but may now be out of date.
