Chancellor’s Summer Statement: Key Points

As the United Kingdom is entering the second phase of the government’s economic response to the coronavirus outbreak, the chancellor delivers his summer statement.

Here is a summary of the key points.

Jobs

∙ Firms will be encouraged to retain furloughed staff by being provided with a so-called ‘job retention bonus’: a one-off payment to employers for every furloughed employee they retain to the end of January 2021.

∙ Support to firms offering apprenticeships will be provided. They will get a payment of £2,000 for each apprentice they take on.

 VAT cuts for the hospitality industry and tourism

∙ To support the industry, the value-added tax will be cut from 20% to 5% on food, accommodation and attractions from 15 July to 12 January 2021.

∙ Food and non-alcoholic drinks in restaurants, pubs and cafes will be affected.

∙ Hot takeaway food will be covered.

∙ Accommodation in hotels and B&Bs will be affected.

∙ The cuts will cover admission to attractions (such as cinemas and theme parks).

 Stamp Duty

∙ The stamp duty threshold in England and Northern Ireland will increase with immediate effect to £500,000 until 31 March.

∙ The following rates will apply for the duration of this period:

∙ According to Rishi Sunak, this will help home buyers to save £4,500 on average.

If you have a question, please do not hesitate to contact James Cohen directly on [email protected] or 0207 822 2257.

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