The Chancellor, Rishi Sunak, has delivered his summer economic plan to help the UK economy recover from the impact of the COVID-19 pandemic.
The Summer statement included the governments plans to protect jobs, help younger workers and encourage spending with measures such as a VAT cut for leisure activities and a restaurant voucher scheme.
Please see our summary of the main points below:
Stamp duty cut
The government has temporarily increased the stamp duty threshold to £500,000 for property sales in England and Northern Ireland, until 31 March 2021,
Anyone completing on a main residence costing up to £500,000 between 8 July and 31 March will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount. The threshold increase applies whether you are buying your first home or have owned property before.
This cut in stamp duty will save buyers as much as £15,000, if they are buying a property of £500,000 or more.
- The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000
- Applies from 8 July until 31 March 2021
Six-month VAT cut for restaurants, hotels and attractions
"Eat out to help out" Scheme - Discount on restaurant meals in August
Diners will be able to get a 50% discount off their restaurant bill under new government plans.
The Treasury has said the 50% discount can be used unlimited times during August and applies to participating restaurants, cafés, and pubs across the UK.
- “Eat out to help out” scheme offers 50% discount for every diner, up to £10 a head, from Monday to Wednesday throughout August
- Covers food and non-alcoholic drinks only
- The discount applies at participating restaurants, pubs, cafes etc
- Restaurant owners can claim the discount in full from the government via an online form
'Job retention bonus' to encourage firms to retain furloughed staff
- A one-off £1000 payment to employers for every furloughed employee retained to the end of January 2021
- Applies to workers earning over £520 per month, UK-wide
- Payments will be made from February 2021
- Further details will be announced by the end of July
New "Kickstart Scheme" to support for young workers
- “Kickstart scheme”: £2bn fund to pay for six-month work placements for 16 to 24-year-olds on universal credit
- Payments cover national minimum wage for 25 hours per week, plus national insurance and pension contributions for Great Britain
- £1,000 grant per trainee for employers who take on new trainees aged 16-24 in England, aiming to triple trainee numbers
- £2,000 grant for employers per apprentice under 25 hired, £1,500 for those over 25, for six months starting 1 August (in England)
- Doubling the number of work coaches at Jobcentre Plus across Great Britain, with extra help for young jobseekers
- £150m extra for the Flexible Support Fund, which provides help for jobseekers (in Great Britain)
- £101m to fund studies for 18 to 19-year-olds in England unable to find work
- Increased funding to expand the Work and Health Programme to provide additional support for unemployed people on benefits for more than three months
- A job-finding support service for those out of work for less than three months
Infrastructure and decarbonisation
- £1bn of grants to public sector bodies to improve energy efficiency.
- £50m towards a social housing decarbonisation fund, aimed to improve the energy efficiency of socially rented homes.
- The Chancellor also gave further details of a £5.6bn package of infrastructure measures.
- This includes measures for hospitals, school buildings, transport, and housing.