Mini-Budget 2020: New Measures to Support People and Businesses
Today the Government announced their mini-Budget 2020 with a further £12 billion for new temporary measures to support people and businesses. Particularly measures are in place to support job creation, and to boost the hospitality industry.
Job Retention Bonus
The current furlough scheme will end on 31 October 2020, find out more about the furlough changes between July 2020 and October 2020 here.
However the Government will pay businesses a £1,000 bonus for every staff member kept on for three months when the furlough scheme ends in October 2020, up until 31 January 2020.
- Employees need to be doing decent work.
- They need to earn at least £520 pm from November 2020 to 31 January 2021.
- This bonus will apply to all furloughed employees.
- We don’t know how this will work yet.
Support for Jobs: The KickStart Scheme
Over 700,000 are leaving education this year. Coronavirus has had a massive impact for these young people.
The Government is supporting new job creation for any 16 to 24 year old at risk of unemployment.
- Minimum of 25 hours at week, paid at least national minimum wage.
- Government will pay wages these young people for 6 months plus an amount to cover overheads.
- Employers can apply for the scheme from August 2020.
- Jobs expected to be created from this Autumn.
- No cap on the number of places available!
£1,000 to take on Trainees
- Employers will be paid £1,000 to take on trainees.
- More funding also being provided for more level 2 and 3 courses for young people.
- Sector based training places will be tripled.
91% of apprentices stay in employment or do further training.
- The Government will pay £2,000 to employers for each new apprentice, for the next 6 months.
- For each apprentice aged 25 or over, the Government will pay £1,500 to the employer.
Support for Job Creation
The Government promises better roads, schools, hospitals and high streets, which will create more jobs across the country.
- Doubling Job Support coaches in Job centres.
- More support for the unemployed to get back to work.
Green Home Grants
- From September 2020, landlords and home owners will be able to apply for Green Home Grants up to £5,000 per household.
- For lower income households, the vouchers will be up to £10,000.
- Funding for energy efficiency being made available for public sector buildings too.
- This will save costs on utilities, but also cut carbon emissions.
Stamp Duty Cut
Property transactions fell by 50% in May 2020, and house prices fell for the first time in 8 years.
- Stamp duty will be cut, by increasing the threshold to £500,000 up to 31 March 2021, taking effect immediately.
VAT Rate Cut to 5% for Hospitality Businesses
*Check out our detailed blog on the VAT Rate Cut to 5% for Hospitality Businesses
80% of hospitality firms temporarily stopped trading in April 2020, and 1.4 million hospitality workers have been furloughed.
Demand will be there once they make their premises safe, and bring their workers back.
- VAT on hospitality and tourism will be cut on food, accommodation and attractions will be cut to 5% from 15 July 2020 to 12 January 2021.
- This means that businesses will only charge 5% to customers, instead of 20%,
- Over 150,000 businesses will be supported, and 1.8 million workers.
- Includes hot and cold takeaway food, restaurants, cafes, pubs, hotels, B & Bs, camp sites, cinemas, theatres etc.
August 2020 “eat out to help out” discount
- *Check out our detailed blog on the Eat Out to Help Out Scheme
- Eat out at any participating business from Monday to Wednesday, and get 50% off (up to £10 per head) for everyone including children!
- Businesses need to register through simple website opening Monday 13 July 2020.
- Businesses can claim weekly with the funds in their bank account within 5 working days.
This mini-Budget 2020 is great news for employees , home owners and businesses, and a big boost to the economy.
Please whatever you decide to do, still make sure you keep yourselves, your loved ones and your teams safe.
We’re here for you
Sign up to our Survive and Thrive webinar to help you get back up and running.
Stay safe. Stay strong.