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Mini Budget July 2020

The chancellor has announced changes in an economic statement – not a budget.

The focus of this mini budget was job creation, being advertised as the second phase of a three-phase approach to dealing with the pandemic that is Corvid 19

Phase 1 -“protect” 

This encompassed all the various support package that have been announced since the last budget on 12th March.

Taxable Grants:-

  • Business rates grants – for small businesses because no one could go out to business premises
  • Self-employed income support grants – for those mainly and usually self-employed and hence without support from others as small
  • Job retention scheme – to cover staff furlough payments so businesses could keep trained staff during the crisis – stopping them becoming unemployed
  • Statutory sick pay rebates for small business with staff off due to coronavirus
  • Digressionary grants from council or others in need.

Repayable Loans:-

  • Bounce Back loan scheme for small businesses
  • Coronavirus Business Interruption Loans


  • Increase in universal credits
  • Mortgage holidays
  • Loan repayment holidays


Phase 2 – “Jobs”

The chancellor is now trying to boost jobs – especially for young people, with the following schemes.

Furlough Bonus for employers

  • Worth £1,000 per furloughed employee
  • Payable in February upon conditions
  • Employee much have returned to work after furlough
  • Wages in November, December & January must have exceeded £520pm

Kick Start Scheme

  • Worth up to £6500 over 6 months, per job created
  • To cover wages and overheads
  • For new jobs created for youngsters aged 16-24
  • Working over 25 hours per week
  • Receiving training & support to find a permanent job

Other incentives for career progression

  • £1,000 for creating new traineeships for those age 18-19
  • More Careers advisors
  • Expansion of work academies
  • £2,000 for new Apprenticeships under the current scheme
  • £1,500 for new Apprenticeships for those over age 25
  • New work coaches to help those looking for work

Housing Sector

No stamp duty on Houses sold for less than £500,000 between 8th July and 31st March

Green homes Grant

  • Vouchers to get your home insulated
  • To cover 2/3 cost up to £5,000
  • Or for poorer households up to £10,000 for the full cost

Plans to make public buildings more energy efficient and decarbonise social housing

Bringing forward building projects – schools, transport etc


VAT on hospitality and tourism reduced to 5% from Wednesday 15th July through to 12th January including

  • Food and drinks eaten on the preemies (excluding alcohol)
  • Hot takeaway food
  • Hotels
  • Camp sites
  • Admission to attractions – list awaited.

Eat Out to Help Out scheme

  • Discount for eating out in August
  • 50% off Monday to Wednesday at registered establishments
  • Worth up to £10 per head, including children – excluding alcohol.
  • Registrations open 13th
  • You must eat on the premises
  • Excludes private party, events and functions

Phase 3 – “recover and rebuild” – will be the focus of the Autumn Budget, with fund raising measures to be announced then.

Look out for

  • pension relief cuts
  • national insurance rises
  • An expansion of making tax digital (online reporting) – as this is thought to improve speed and quality of tax takes.
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