Thursday, 9 July 2020

Chancellor announces A Plan for Jobs

The Chancellor, Rishi Sunak has presented A Plan for Jobs to the House of Commons. Thanks, to the progress made in suppressing the virus the Government is now slowly allowing people to go back to work in accordance with COVID-secure workplace guidance. That is why it was right for the Chancellor to announce the second phase of economic interventions by the Government to help the economy deal with the negative economic impacts of the Coronavirus pandemic. The Government has already supported workers through the Coronavirus Job Retention Scheme, the self-employed with the Self - Employed Income Support Scheme and businesses with grants and loans being made available. 

The new announcements include:

Jobs Retention Bonus - Employers who bring people back from furlough and keep them on until January will receive £1,000 for each staff member. 

Kickstart Scheme - The Kickstart scheme will directly pay employers to create new jobs for any 16-24 year old at risk of long - term unemployment. The scheme will pay wages for 6 months, plus an amount to cover overheads. That means, for a 24 year-old, the grant will be around £6,500.

Traineeships - The Government will pay employers £1000 to take on trainees, which triples the number of paces. This is a proven scheme to get young people ready for the work place. Traineeships consist of work experience placements, training and work preparation for 16-24 year olds. They last from 6 weeks to 6 months depending on need and can lead to apprenticeships, further education and other employment. 

Work coaches - The Government is doubling the amount of work coaches at a cost of nearly £900 million. Work coaches are people's first point of contact for someone who loses their job. They provide invaluable personalised support to help people get back to work.  

Apprentices - For the next six months the Government will pay businesses to hire young apprentices, with payment of £2,000. A new bonus has also been announced for hiring apprentices aged 25 and over, with a payment of £1,500.

Stamp Duty - The Stamp Duty threshold will be raised to 500,000 until 31 March 2021 to take effect immediately. Before, there was no stamp duty on transactions below £125,000 or £300,000 for first-time buyers. Everyone buying a main home under £500,000 will pay no stamp duty at all which means 9/10 of main home buyers will pay no stamp duty at all. 

Green Home Grants - The Government is funding £2bn of Green Home Grants helping to unlock work for thousands of plumbers, builders and tradespeople. Homeowners will receive vouchers to pay for at least two - thirds of green improvements such as loft, wall and floor insulation. Low - income households will be eligible for up to 100% government funding up to £10,000 which could make over 650,000 homes more energy efficient. It could also save households save up to £300 a year on their bills. 

Cut in VAT for hospitality and tourism sectors - VAT will be reduced from 20% to 5% to take effect from Wednesday 15th July 2020. This is a £4bn catalyst benefitting over 150,000 businesses, and consumers everywhere - helping to protect around 2.4 million jobs.

Eat Out to Help Out - For the month of August, the Government will give a 50% reduction, up to £10 per head, on sit down meals and non alcoholic drinks Monday - Wednesday. This scheme will support around 130,000 businesses and help protect the jobs of their 1.8 million employees.

The Chancellor also announced a full Spending Review and Budget will come in the Autumn. You can read the full 'A Plan for Jobs' by clicking here.