The Coronavirus Summer Statement
Sarah Hamilton - July 9th, 2020
The Summer Statement was presented by Rishi Sunak on 8 July 2020 – truly a year like no other. The Conservative Government spending spree to try to stimulate our Coronavirus battered economy contained several bold measure, including infrastructure projects brought forward to support Boris’s ”Build Build Build”, and schemes for “Jobs Jobs Jobs”, as the spectre of soaring unemployment looms. The beleaguered hospitality industry has been given a helping hand through a reduction in VAT, and housebuyers will be encouraged by the reduction in Stamp Duty.
- VAT cut from 20% to 5% on hospitality, accommodation and attractions – with effect from 15/7/20 to 12/1/21
- Firms to be paid a £1,000 bonus for every furloughed employee brought back off furlough and still in work on 31/1/21
- Kick Start Scheme to pay the wages of new hires aged between 16 to 24 for 6 months (commencing in August 2020)
- Employers will be given £2,000 for every new apprentice they hire (August 2020 to January 2021) and £1,000 for every new trainee
- Zero Stamp Duty Land Tax on the first £500,000 cost of main homes from 8/7/20 to 31/3/21
- Grants for energy saving improvements to homes
And – finishing his relatively short speech with a flourish – “Eat Out to Help Out” – a voucher for the lower of 50% of food and non-alcoholic drinks or £10 per head to tempt us back to pubs and restaurants (needless to say terms and conditions apply!)
As with the economic support measures announced from 20 March 2020 onwards, at Richard Sexton & Co we will be studying the detailed guidance as it emerges so we can be on hand to provide advice and support as we all work together to combat adverse financial repercussions at this strangest of times.
It would seem highly probable that the Autumn Statement in 2020 will contain significant tax increases – surely this spending spree has to be paid for – so perhaps this Summer is the time to plan strategically for the future.
As always, please do contact us to discuss your own circumstances – we shall be pleased to help.