Chancellor Rishi Sunak has revealed a range of measures designed to boost the economy after revealing in his summer economic update that the UK is facing profound economic challenges and unemployment as a result of the Coronavirus.
Unemployment is drastically increasing. The UK economy has shrunk by 25% in the past two months, it has only risen by 25% in the past 18 years.
Therefore, chancellor Rishi Sunak revealed a £30bn package of measures designed to boost the economy and job market.
The furlough scheme is due to end this October. An “act with a plan” job retention bonus of £1,000 per employee will be paid to employers who bring back their employees from furlough and keep them employed until January 2021.
There has been a temporary cut on stamp duty property sales up to £500,000 until March 2021, and will take effect immediately.
Cut on VAT
There will be a temporary VAT cut on food, accommodation and attractions from 20% to 5% from the 15th July until the 12th January 2021.
The “kickstart” job retention scheme is a £2bn scheme designed to boost jobs for young people. Firms will be paid by the treasury to employ 16-24 year-olds for 25 hours a week with 6-month work placements. There is no cap on the number of places available.
Training and Employment
The government will pay employers £2,000 per apprentice they take on aged 16-24 and £1,500 to hire apprentices aged 25 and over. This will create new apprenticeships within the UK and boost the unemployment figures.
£1bn will be given to the department for work and pensions to help job seekers.
Employers will be given payments of £1,000 to take on new trainees.
Green Investment Package
A £3bn “Green Investment Package” for decorating housing and public buildings. This includes £2bn in grants for landlords and homeowners to improve energy-efficient homes up to £5,000 per household to help reduce carbon emissions.
Eat Out to Help Out
An “Eat Out to Help Out” discount scheme, offering up to 50% off meals, up to £10 per person, in participating pubs, cafes and restaurants Monday- Wednesday in August.
Businesses will be able to register through a website launching next Monday and will be able to claim there money back within 5 working days
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