The chancellor has announced changes in an economic statement – not a budget.

The focus of this mini budget was job creation, being advertised as the second phase of a three-phase approach to dealing with the pandemic that is Corvid 19

Phase 1 -“protect” 

This encompassed all the various support package that have been announced since the last budget on 12^th March.

Taxable Grants:-

• Business rates grants – for small businesses because no one could go out to business premises
• Self-employed income support grants – for those mainly and usually self-employed and hence without support from others as small
• Job retention scheme – to cover staff furlough payments so businesses could keep trained staff during the crisis – stopping them becoming unemployed
• Statutory sick pay rebates for small business with staff off due to coronavirus
• Digressionary grants from council or others in need.

Repayable Loans:-

• Bounce Back loan scheme for small businesses
• Coronavirus Business Interruption Loans

Others

• Increase in universal credits
• Mortgage holidays
• Loan repayment holidays

 

Phase 2 – “Jobs”

The chancellor is now trying to boost jobs – especially for young people, with the following schemes.

Furlough Bonus for employers

• Worth £1,000 per furloughed employee
• Payable in February upon conditions
• Employee much have returned to work after furlough
• Wages in November, December & January must have exceeded £520pm

Kick Start Scheme

• Worth up to £6500 over 6 months, per job created
• To cover wages and overheads
• For new jobs created for youngsters aged 16-24
• Working over 25 hours per week
• Receiving training & support to find a permanent job

Other incentives for career progression

• £1,000 for creating new traineeships for those age 18-19
• More Careers advisors
• Expansion of work academies
• £2,000 for new Apprenticeships under the current scheme
• £1,500 for new Apprenticeships for those over age 25
• New work coaches to help those looking for work

Housing Sector

No stamp duty on Houses sold for less than £500,000 between 8^th July and 31^st March

Green homes Grant

• Vouchers to get your home insulated
• To cover 2/3 cost up to £5,000
• Or for poorer households up to £10,000 for the full cost

Plans to make public buildings more energy efficient and decarbonise social housing

Bringing forward building projects – schools, transport etc

Hospitality

VAT on hospitality and tourism reduced to 5% from Wednesday 15^th July through to 12th January including

• Food and drinks eaten on the preemies (excluding alcohol)
• Hot takeaway food
• Hotels
• Camp sites
• Admission to attractions – list awaited.

Eat Out to Help Out scheme

• Discount for eating out in August
• 50% off Monday to Wednesday at registered establishments
• Worth up to £10 per head, including children – excluding alcohol.
• Registrations open 13^th
• You must eat on the premises
• Excludes private party, events and functions

Phase 3 – “recover and rebuild” – will be the focus of the Autumn Budget, with fund raising measures to be announced then.

Look out for

• pension relief cuts
• national insurance rises
• An expansion of making tax digital (online reporting) – as this is thought to improve speed and quality of tax takes.