CORONAVIRUS UPDATE
Yesterday, the Chancellor of the Exchequer announced a series of measures to try to aid the UK economic recovery by protecting jobs and to support struggling businesses.
The Job Retention Bonus
- Employers who retain furloughed workers as employees up to 31st January 2021 will receive a one-off bonus of £1,000 per retained employee.
- Employees must remain continuously employed during this period.
- Employees must earn on average above the Lower Earnings Limit (£520 per month) between the end of the Coronavirus Job Retention Scheme and 31st January 2021.
- Payments will be made in February 2021.
The Kickstart Scheme
- Employers will receive funding of up to 100% of the National Minimum Wage from the Government for each employee (aged 16-24) covering a maximum of 25 hours a week.
- The Government will also cover the relevant employers National Insurance costs.
- The Government will also cover the relevant employer automatic enrolment pension scheme contributions.
- The individual must be on Universal Credit and deemed to be at risk of long-term unemployment.
- The funding will be for each 6-month job placement.
- The employer can top up the wages if they so wish.
Tourism and Hospitality Sectors
- VAT rate cut from 20% to 5% on most tourism and hospitality related activities.
- This will apply from 15th July 2020 to 12th January 2021.
- The 5% VAT rate will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK.
- The reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK.
- ‘Eat out to help’ (EOH) discount scheme will cover days Monday to Wednesday in August.
- The EOH scheme will provide a 50% discount for sit down meals up to £10 per head.
- Cafes, pubs and restaurants and other eligible food service establishments will need to register for the EOH Scheme in order to make a claim.
Stamp Duty Land Tax (SDLT)
- There is a temporary increase to the Residential SDLT nil rate band from £125,000 to £500,000 in respect of residential property purchases in England and Northern Ireland.
- This runs from 8th July up to and including 31st March 2021.
A Green Recovery Package
- A Green Homes Grant (GHG) providing at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household.
- For those on the lowest incomes, the GHG scheme will fully fund energy efficiency measures of up to £10,000 per household.
- The Government will invest up to £40 million in a Green Jobs Challenge Fund for environmental charities and public authorities.
Additional Funding
- £1.5 billion for hospital maintenance and upgrades.
- £100 million for our local roads network
- Over £1 billion to start to rebuild schools in the worst condition in England, plus £760 million this year for key maintenance work on schools and FE colleges
- £1 billion for local projects to boost local economic recovery in the places that need it most
- £142 million for court maintenance to repair around 100 courts across England.
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