The Chancellor presented his Summer Statement today; basically a ‘mini budget’ with the aim of kick starting our struggling economy.
Here’s my quick run down of what it all means for the pound in your pocket.
Jobs, jobs, jobs…..
The new Job Retention Bonus will reward companies that bring back furloughed staff.
Companies can get £1,000 for every employee they bring back, (providing employees are paid at least £520 a month), and workers must be kept on to January to qualify. Companies get the cash from February.
Small print stuff: More details due by the end of July.
Stamp Duty holiday
Thinking about househunting or in the process of buying a place? This temporary Stamp Duty holiday could save you a few grand.
Until today, no Stamp Duty, (or Stamp Duty Land Tax, to give it the proper name), was payable on properties up to £125,000, (or £300,000 for first time buyers), but from today that limit goes up to £500,000.
Changes apply immediately, and according to the Chancellor’s sums, this means a saving of £4,500 based on the ‘average’ bill.
Small print stuff: This is a ‘temporary’ holiday and runs till 31st March 2021.
Eat Out To Help Out
In a bid to get us heading back to cafes, pubs and restaurants, this new scheme means you can get a 50% discount, (up to £10 a head), on food and soft drinks during August.
Will be available Monday to Wednesday at participating outlets and businesses can sign up on the Government website from Monday.
Small print stuff: Discount doesn’t apply to alcohol.
Kick Start Scheme
This one’s about creating new jobs for 16 – 24 year olds with a Government promise of paying their wages for the first six months.
Companies must create ‘new jobs’, for at least 25 hours a week, pay at least National Minimum Wage and offer training and support to qualify.
There’s also a Government bonus for firms who hire apprentices at £2,000 per apprentice. But the company gets this, not the apprentice.
Small print stuff: Companies can apply from next month for this with jobs available from the Autumn.
VAT cut for hospitality & tourism
VAT is currently charged at 20%, but will be slashed to 5% for six months until 12th January 2021.
Cut applies to food, accommodation and attractions so everywhere from theme parks, to cinemas and zoos so in theory should mean cheaper tickets and meals……
Green Homes Grant
Worth £2 billion; from September homeowners and landlords can apply for vouchers towards the cost of making homes more energy efficient.
Should mean more work for plumbers, tradespeople and builders and grants will cover up two thirds of the cost up to a maximum of £5,000 per household, and £10,000 for those on lower incomes.