Mini Budget July 2020

Rishi Suchak’s 30 billion summer mini-budget

Rishi Suchak's 30 billion summer mini-budget

Rishi Suchak’s 30 billion summer mini-budget

Chancellor Rishi Sunak unveiled his summer mini-budget this week to help people keep and find jobs, as well as look to revive the hospitality and housing markets. Rishi Sunak appears to have put in motion some initiatives to get behind businesses and people. Let’s run through some of them in more detail.

£1,00 Furlough Bonus to reward companies for bringing people back from furlough

Questionably, this might seem too late for many people. Rishi Sunak announced that the Government would be incentivising companies to bring people back from furlough. Arguably, this is incentivising companies who have every intention of bringing people back and it has missed the boat on people who have already been made redundant. Yet it is a financial incentive to try and get people back into companies. However, if a company is struggling to the point of having to make redundancies. A £1k incentive, unfortunately, won’t be much to keep that job in the long-term.

 mini-budget
Photo by Helena Lopes on Pexels.com

Kickstart Scheme for 16-24 year-olds this Autumn

The Chancellor pledged £2billion to create ‘hundreds of thousands’ of new jobs for 16-24-year-olds. Many 16-24-year-olds have suffered during the COVID-19 crisis. With so many people facing long-term unemployment, this is hopefully a way to get people off unemployment benefit and into employment.

The Government will effectively cover 100 per cent of the relevant National Minimum Wage for 25 hours a week. It will also cover the employer’s National Insurance contributions and minimum automatic enrolment contributions in a bid to persuade businesses to create new roles.

Rishi Sunak said: ‘We cannot lose this generation, so today, I am announcing the Kickstart Scheme. 

‘A new programme to give hundreds of thousands of young people, in every region and nation of Britain, the best possible chance of getting on and getting a job.

The Kickstart Scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment.”

Stamp Duty mini-budget
Photo by La Miko on Pexels.com

Stamp Duty Holiday to revive the housing market

The chancellor confirmed that the level at which home buyers will start paying stamp duty would be immediately raised from £125,000 to £500,000 until March 31 next year. So if anyone can afford to buy a home, then this is the time to do it, budget permitting! Read Rightmove’s reaction to the Stamp Duty here.

Eat Out to Help Out discount in August

In August people in the UK will be incentivised to eat out to boost the flagging hospitality industry. Will a £10 discount incentivise you to eat out once again?

Eat Out to Help Out

50% off meals with the discount capped at £10 per head.

According to the Government website, eligible establishments are those in which food is sold for immediate on-premises consumption e.g.

  • restaurants
  • cafés
  • public houses that serve food
  • hotel restaurants
  • restaurants and cafes within tourist attractions, holiday sites and leisure facilities
  • dining rooms within members’ clubs
  • workplace and school canteens

The discount can be applied to food and/or non-alcoholic drink purchased for immediate consumption on-premises, up to a maximum discount of £10 per diner (inclusive of VAT). There is no minimum spend requirement.