Westminster Report: Summer Statement 2020

Since the start of the coronavirus pandemic, the Government has said it will do whatever it takes to protect people and businesses from the immediate economic crisis.

That's why to date we have put a £160 billion plan in place to protect people’s jobs, incomes and businesses – one of the largest and most comprehensive in the world.

On Wednesday, in the Summer Statement, the Chancellor presented the Government's plans moving forward to consolidate and build on measures we have taken so far. I wanted to take the time to let you know how we intend to help with the uncertainty that lies ahead in the weeks and months to come both locally and nationally.

TOURISM & HOSPITALITY

We are also taking steps to provide much-needed support to our severely affected tourism and hospitality sectors, which employ 2.4 million people.

Firstly, for the next six months, the Government will cut VAT on goods and services supplied by food services, attractions and accommodation sectors to 5%, from its current level of 20%, giving a vital £2.2 billion boost to over 150,000 businesses in the sector, to help protect the jobs of those it employs.

Secondly, to help people return to eating out safely, and to provide further support for those employed by our cafes, restaurants, pubs, and other eligible businesses, this Government is introducing an unprecedented scheme to give anyone in the UK 50% off the cost of the price of a meal out for the month of August, including the cost of food and non-alcoholic drinks. The discount will operate from Mondays to Wednesdays, up to a cap of £10 per person, and registration for eligible businesses will open next week.

I would urge everyone to support our local pubs, restaurants and cafes and make the most of this Government scheme whilst it lasts. With 535 accommodation, food and recreation businesses in the constituency of Daventry these measures should prove significant locally.

SUPPORTING JOBS

A new Kickstart Scheme to support hundreds of thousands of young people into work.

The Government will directly pay employers who create jobs for any young person aged 16-24 at the risk of being long-term unemployed, covering the cost of the young person’s salary, as well as a reasonable administration cost.

The funding will be conditional on the jobs being genuinely additional, and the jobs must pay at least 25 hours a week, on at least the National Minimum Wage. Employers will be able to apply to be part of the scheme from next month.

The first new Kickstarters will begin their jobs in the Autumn.

In addition, the Government will, for the first time ever, pay employers £1,000 to give trainees work experience, and we will provide funding to triple the number of traineeships. The Government will also pay employers to create new apprenticeships between August 2020 and January 2021.

For businesses hiring new young apprentices, the Government will provide £2,000 for each apprentice they hire under the age of 25. These payments will be in addition to the existing £1,000 payment the Government already provides for new 16-18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan, where that applies. Businesses hiring a new apprentice age 25 and over will receive a payment of £1,500.

CREATING JOBS

We need to support our housing sector and give people the confidence to buy a home, and to renovate and improve, to help create jobs.

That is why the Chancellor has decided to cut Stamp Duty Land Tax (SDLT), with a temporarily increase of the Nil Rate Band of Residential SDLT, in England and Northern Ireland, from £125,000 to £500,000.

This will apply from 8 July 2020 until 31 March 2021. This will cut the tax due for everyone who would have paid SDLT, saving up to £15,000, and means that in England and Northern Ireland nearly 9 out of 10 people getting on or moving up the property ladder will pay no SDLT at all.

To support green jobs, the Government is announcing a £2 billion ‘Green Homes Grant’, under which homeowners and landlords in England can apply for at least two thirds of the cost of upgrading the energy performance of their homes (up to a maximum contribution of £5,000). Low income households will be eligible for up to 100% government funding, up to £10,000.

The Chancellor is also releasing a further £1 billion to help improve the energy efficiency of our public sector buildings, alongside a £50m fund to pilot the right approach to decarbonise social housing. Together, this package could support around 140,000 jobs, reduce households’ energy bills by hundreds of pounds a year, and reduce CO2 emissions by over half a mega tonne per year.

We are also investing in our infrastructure, and last week the Prime Minister announced plans to accelerate over £5 billion of investment.

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Chris Heaton-Harris MP's Westminster Report: Summer Statement 2020

Chris Heaton-Harris MP's
Westminster Report:
Summer Statement 2020