Chancellor of the Exchequer Rishi Sunak has recently announced a host of new measures in a bid to kickstart the UK economy. Measures included a job retention bonus, stamp duty holiday and a date night discount through August. Below are six important changes in Rishi Sunak’s mini budget:
One of the first changes the chancellor has introduced is a Kickstart scheme to help under 25s take their first steps on the career ladder during the COVID-19 pandemic. The UK jobs crisis has seen many workers furloughed and made redundant with recessions affecting young people the worst - this new scheme will look to address challenges faced by young people.
With redundancies looming for many people in the UK, businesses have voiced concerns of mass unemployment when the chancellor’s Job Retention Scheme winds down in October. To encourage employers to bring back furloughed workers, Mr. Sunak has invoiced a ‘job retention bonus program’ which offers a one-off payment of £1,000 to businesses for each employee they bring back into the workplace.
Mr. Sunak has also announced an emergency stamp duty holiday to help revive the UK’s struggling property marketing which has seen a slump in purchases during the lockdown. The chancellor has raised the threshold for paying stamp duty from £125,000 to £500,000 and will run this until March 31st, 2021.
One of the hardest hit sectors during the lockdown has been the hospitality and tourism sector. To counteract this the chancellor has cut the VAT rate on food, accommodation, and attractions from 20 per cent to 5 per cent for six months - which will run until January 12th, 2021. The cut also applies to food from restaurants, cafes, pubs and accommodation in hotels, B&Bs, campsites, and caravan sites as well as attractions such as cinemas, theme parks and zoos.
The unique ‘date night discount’ has been brought in by the chancellor throughout August to help revive the hospitality sector. The new Eat Out Help Out scheme will cover half the bill for sit down meals worth up to £10 per person in cafes, restaurants, and pubs across the UK. It will be available Monday to Wednesday throughout August, and businesses will receive cash repayments within five working days.
Finally, the chancellor has announced plans to help the green economy by creating a £3bn package of green investment to help create thousands of jobs and to make public sector buildings greener. Homeowners will receive vouchers of up to £5,000 and £10,000 for poorer households - to pay for “green” property upgrades.