COVID-19: important update
Chancellor Rishi Sunak has today announced the latest Government support in response to the Coronavirus crisis. The announcement is summarised as follows:
Furlough Scheme
For all employers who have furloughed employees, if you bring the employee back to work, and they are still in work up to 31 January 2021, the Government will pay the employer a £1,000 bonus, per employee
Kickstart Scheme
The Government will pay employers directly to create new jobs for any 16 to 24-year-old at risk of long-term unemployment
Employers will receive £1,000 to take on trainees
The Government will pay the wages for each ‘Kickstarter’ for the first 6 months, plus an amount to help cover overheads
Businesses can apply for this scheme from August, with the first Kickstarters commencing their news jobs in the Autumn
Employers will receive £2,000 each to encourage them to hire apprentices (£2,000 per apprenticeship created)
The apprenticeship scheme is also available for those over 25 years of age, with the bonus received being in the sum of £1,500 per apprenticeship
Green Jobs Plan
Homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient. The grant will cover at least two-thirds of the cost, up to a maximum of £5,000
VAT Reduction for Hospitality and Tourism Sectors
From Wednesday 15 July, up until 12 January 2021, VAT rates will be reduced from 20% to 5% for these sectors
Meals Discounts
For participating restaurants, the Government will give everybody 50% off of meals for the month of August
The discount applies from Monday to Wednesday and is capped at £10 per head
Businesses will need to register for the scheme online and will be able to do so from Monday
Businesses will then be able to claim the discount provided back each week in August, with the funds in their bank account within 5 working days
Stamp Duty
There will be no stamp duty whatsoever to pay on properties that cost less than £500,000
This is applicable immediately until 31 March 2021
My personal view is that this is another remarkable pledge from the Chancellor and will go a long way to abate many worries, particularly for employers and employees affected by the furlough scheme, where mass redundancy at the end of the furlough scheme was a real concern for many, many people.
It is no secret how harshly the crisis has affected restaurants and the like, and a real effort has been made to kick this sector back in to action - I suspect restaurants will be very busy in August, which is never a bad thing!
There is no doubt that the country is still feeling the pinch to say the least, both financially and psychologically, but I do think that this announcement provides hope for an awful lot of people. In the meantime, and needless to say, please do stay safe and well.