Chancellor's Statement

08 Jul

Chancellor of the Exchequer Rishi Sunak has delivered an economic statement to the House of Commons. Please see below a list of all key points.

A full press release can be accessed here: https://bit.ly/2CfwF1u

The full briefing document from the Treasury can be accessed here: https://bit.ly/2VZjzwi

Chancellor of the Exchequer Rishi Sunak 

Opening remarks 

  • Government will do all it can to give people the opportunity for good and secure work and no one shall be left without hope.
  • Goal of this plan is to protect, support and create jobs.
  • Important to give young people the opportunities for work.
  • £49bn has been provided so far for public services during the crisis.
  • Government interventions have significantly protected peoples incomes during the crisis.
  • Now entering the second phase of the Government economic response to the pandemic.
  • Economy has contracted by 25%.
  • Shall produce a budget and spending review in the Autumn.

Support Finding Jobs 

  • Furlough scheme cannot last forever. It shall wind down flexibly and gradually until October.
  • Introducing a new policy to reward and incentivise employers for bringing back furloughed employees. £1000 for every furloughed employee being brought back and kept through to January 2021. Potentially a £9bn policy to bring people back to work.
  • For younger people, a new kickstart scheme shall be introduced. Directly paying employers for creating jobs for 16-25 year olds. Funding conditional on firms proving they are newly created jobs. Government will pay young people’s wages for six months, plus an amount to cover overheads. That means, for a 24-year-old, the grant will be around £6,500.
  • Funding for wew careers advisors and traineeships.
  • Expand universal skills offer.
  • On apprenticeships, for next 6 months, Government shall pay employers to create apprenticeships, paying £2000 per apprentice.
  • Doubling the number of work coaches in job centres, expanding the work and health programme and developing a new scheme to help the unemployed. Investing an extra £1bn in the Department for Work and Pensions.

Support Job Creation 

  • Doubling down on ambition to level up with a green recovery at its heart.
  • £2bn green homes grand. From September homeowners and land owners can apply for vouchers to help towards the cost. For low income households, the vouchers shall cover the work.
  • On top of the £2bnm there shall be £1bn to improve the energy efficiency of public sector buildings.
  • £50m to improve energy efficiency in social housing.
  • Stamp duty to be cut from today. Threshold increased to £500,000. This shall run until the 31st March 2021. This comes into force today.

Protect Jobs that already exist 

  • Hospitality and tourism employer over 2m people. Important to restart these sectors to get them bustling again.
  • VAT on hospitality and tourism for the next 6 months on food, accommodation and attractions to be cut from 20% to 5%.
  • For the month of August, everyone shall be given an eat out, to help out discount. Offering customers a discount worth up to £10 per head when they eat on from Monday to Wednesday in August.