A £30bn business support package has been put together by chancellor Rishi Sunak to help launch a restart to the economy.
As part of his summer economic update to the House of Commons, Sunak promised to turn the UK’s national recovery “into millions of stories of personal renewal.”
He set out a number of measures, some of which may help drone businesses as the industry gets started on its quest to get back to some sort of normality.
- a £1,000 bonus for each worker that companies bring back from furlough and employ through to January next year;
- a “kickstart scheme” to directly pay firms to create jobs for 16 to 24-year-olds;
- cash for businesses to take on trainees and apprentices;
- an eight-month temporary cut in stamp duty, with no charge on property transactions below £500,000.
The chancellor went into detail on what the business support changes to furlough and employment mean, detailing how the scheme could cost around £9bn if every furloughed employee was retained by their firms.
He explained: “If you stand by your workers, we will stand by you. If you’re an employer and you bring back someone who was furloughed – and continuously employ them through to January – we’ll pay you a £1,000 bonus per employee.”
He continued: “It’s vital people aren’t just returning for the sake of it – they need to be doing decent work.”
“So for businesses to get the bonus, the employee must be paid at least £520 on average, in each month from November to the end of January – the equivalent of the lower earnings limit in national insurance.”
He also outlined the following as part of a bid to help boost business for hospitality, tourism and leisure sectors:
- a cut in VAT on food, accommodation and attractions from 20% to 5% until 12 January;
- an “Eat Out to Help Out” discount of up to £10 per head to get Britons back to restaurants, cafes and pubs.
As part of the business support announcement, Sunak said: “We will not be defined by this crisis, but by our response to it. It is an unambiguous choice to make this moment meaningful for our country in a way that transcends the frustration and loss of recent months.”
Adding: “It is a plan to turn our national recovery into millions of stories of personal renewal.”
Described by Sunak as a “mini-budget,” VAT will be cut by 15% on food from restaurants, cafes and pubs, accommodation in hotels, B&Bs, campsites and caravan sits, and attractions such as cinemas, theme parks and zoos.