Chancellor announces new measure to save jobs in 2020 summer statement
In the summer statement made today, Rishi Sunak revealed the government’s plans to focus on protecting, supporting and creating jobs.
While making it clear that the government wouldn’t be able to save every job, Sunak has stated that he will not accept unemployment as inevitable and has announced a number of measure designed to support both businesses and their employees.
One of the biggest announcements to come out of the Chancellor’s previous statement, in March, was the Job Retention Scheme. The end of this scheme in October will prove critical for UK businesses.
Today, a new ‘job retention bonus’ was announced. As an incentive to bring employees off furlough, businesses will receive a £1,000 bonus for every employee who has been brought off furlough and continues to be employed until January 2021, providing they take home a minimum wage of £520 per month during that period.
Here is a summary of the other measures announced today, which will likely have a huge impact on businesses and their staff in the coming months.
Another key focus was on workers under the age of 25, who have been shown to be most at risk of interruptions to their job. This age category is two-and-a-half times more likely to work in a sector that has closed.
In order to support this demographic new schemes focusing on training, skill development and apprenticeships have been announced.
The Kickstart Scheme will see the government subsidise the first 6 months of wages where jobs are newly created and filled by 16-24 year olds on universal credit.
If you’re considering taking advantage of this scheme to create jobs for young candidates, take a look at this blog on the benefits of hiring young talent.
The government will also pay businesses subsidies to encourage them to take on new workers in training roles, offering £1,000 to take on new trainees, and £2,000 to take on new apprentices.
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When it comes to creating jobs, the government plans for a push on developing infrastructure, building new roads, schools, hospitals and more.
Mr Sunak also announced a £2bn Green Homes Grant under which “homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient and create local jobs”.
“The grants will cover at least two thirds of the cost, up to £5,000 per household,” he says.
A further £1bn will go toward improving the energy efficiency of public sector buildings, and it is hoped these measures together will help to support 140,000 green jobs.
In order to kick-start the housing industry, stamp duty is being cut temporarily, with the threshold for which you pay no stamp duty being increased from £125,000 to £500,000 until March 2021.
Finally, the chancellor discussed measures to support the hospitality and tourism sectors. VAT on food, accommodation and attractions will be cut from 20% to 5% for the next 6 months as the industry restarts.
And in a move to encourage the public to “Eat Out to Help Out”, in the month of August everyone will receive 50% off food in participating restaurants, with the scheme covering up to £10 for adults and children and applying Monday to Wednesday.
What did you make of the measures announced? Do they go far enough to support your business? Please share your thoughts in the comments below.