Mini Budget Summary Summer 2020

(announced on 8th July 2020)

Key Headline Announcements

On Wednesday, 8 July 2020, the Chancellor, Rishi Sunak, pledged to protect, support and create jobs and get pubs and restaurants going again as he unveiled a package to kickstart the economy’s recovery.

While updates to the associated Treasury Direction and HMRC’s Guidance are awaited, the key updates are as follows:

Job Retention Bonus

  • The Chancellor announced new job retention bonus for employers who bring back furloughed staff. 
  • UK Employers will receive a one-off bonus of £1,000 for each furloughed employee still employed as of 31 January 2021.

VAT

  • VAT on food, accommodation and attractions has been cut from 20% to 5%, a £4bn boost for the industry.
  • This will save households £160 per year on average.
  • VAT will be reduced from 15 July 2020 until 12 January 2021

Stamp Duty

  • The Chancellor announced a temporary holiday on stamp duty to help revive the property market. 
  • Previously, there was no stamp duty on transactions below £125,000 (or £300,000 for first-time buyers). 
  • Now, homebuyers will be temporarily exempt from paying the Stamp Duty tax for the first £500,000 of any property price.
  • It takes effect immediately from 8 July 2020 until 31 March 2021.

Kickstart Scheme

  •  £2 billion ‘Kickstart Scheme’ to create thousands of fully subsidised jobs for 16-24 year olds, claiming Universal Credit at risk of long-term unemployment. Funding covers 100% of National Minimum Wage for 25 hours a week for a 6-month employment term.
  • It will also pay £1,500 for every new apprentice above 25.
  • For the next six months, the Government will pay businesses up to £2000 for every new apprentice.

50% Meals Discounts

  • Every Briton, including adults and children, will be given an “eat out to help out” discount.
  • Meals eaten at any participating restaurants, on sit-down meals and non-alcoholic drinks, Monday to Wednesday in the month of August will be 50% off at up to £10 per head.

£3bn Green jobs plan

  • The Chancellor announced a £3bn package of green investment to help create thousands of jobs.
  • The grants will cover at least two thirds of the cost, up to £5,000 per household.