On 8th July 2020, Chancellor has delivered his summer economic plan to help the UK economy recover from the impact of the coronavirus pandemic. Here is a summary of the main points:
Job retention bonus’ to encourage firms to retain furloughed staff
A one-off £1000 payment to employers for every furloughed employee retained to the end of January 2021
Applies to workers earning over £520 per month, UK-wide
Six-month VAT cut for restaurants, hotels and attractions
Value added tax cut from 20% to 5% from 13 July to 12 January 2021 for selected areas
Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered
Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected
Stamp duty cut
The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000
Applies from 8 July until 31 March 2021
Discount on restaurant meals in August
“Eat out to help out” scheme offers 50% discount for every diner, up to £10 a head, from Monday to Wednesday throughout August
Covers food and non-alcoholic drinks only
Applies at participating restaurants, pubs, cafes etc