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.
- 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.
- 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
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
- 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.