Chancellor Rishi Sunak announced his ‘mini-budget’ this afternoon, providing the details of his emergency plans for the country’s economic recovery after suffering greatly during the coronavirus pandemic.
His speech, which took place in the House of Commons, revealed the government’s new £2 billion injection to the job market in a bid to create jobs for young people, including bonus incentives for companies to hire apprentices and retain furloughed staff.
The Chancellor also announced initiatives aimed at resuscitating the housing market and the hospitality industry, both of which have taken a hit due to COVID-19.
The ‘mini-budget’ won’t replace the autumn budget, which will still go ahead later this year.
Here’s everything you need to know about Sunak’s speech this afternoon.
How to watch Rishi Sunak’s ‘mini budget’
Rishi Sunak’s ‘mini budget’ was broadcast by news channels including Sky News and BBC One. BBC Parliament aired the statement from the House of Commons.
When did Rishi Sunak present his ‘mini budget’?
The Chancellor began his ‘mini budget’ at 12:39pm on Wednesday 8th July. It ended around 1.30pm, with Sunak taking questions from other members of parliament.
Summary of the statement
Jobs, Jobs, Jobs
“Jobs, jobs jobs” has been the Chancellor’s key phrase leading up to his speech so it didn’t come as a surprise to many when he announced the government’s new £2 billion Kickstart Scheme, aimed at creating thousands of job placements for young people aged between 16-24.
Employers will be coaxed with £1000 bonuses while companies will receive £2000 each to encourage the hire of apprentices,
There will also be a £1000 bonus paid to businesses for each furloughed staff members brought back to work through to January.
The Chancellor also announced a £3 billion green jobs plan, £2 billion going to homeowners and landlords willing to improve the energy efficiency of homes in a bid to save money and create local jobs.
Up to £40 million will also be provided by the government to create 5,000 jobs at environmental charities and public authorities.
A holiday for stamp duty
The Chancellor announced a temporary increase in the threshold for stamp duty – raising it from properties worth £125,000 to those worth £500,000 – to revive the property market.
Stamp duty is a lump sum amount paid by anyone buying a property or piece of land worth over a certain amount.
Thanks to this emergency measure, set to end in March 2021, homebuyers will be temporarily exempt from paying stamp duty for the first half a million of any property price, which could save those climbing the property ladder an average of £4,500 and up to £15,000.
Help for the hospitality sector
In a bid to help the entertainment and dining industry, Sunak revealed a huge VAT cut for hospitality and tourism sectors as well as a 50 per cent discount for diners.
The “eat out to help out” discount will give diners 50 per cent off up to £10 per head at participating businesses from Monday until Wednesday in August.
VAT on food, non-alcoholic drinks, attractions and accommodation has also be cut from 20 per cent to five per cent.
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