Jul 8th, 2020
4 mins
On Wednesday 8th July, the Chancellor, Rishi Sunak announced a number of things in his summer economic statement that the food industry could benefit from and help get the hospitality sector back up and running.
The Chancellor began by announcing a new job retention bonus scheme, explaining that any employer who brings someone back when the furlough scheme ends in October, and continues to employ them until January 2021, will receive a £1,000 bonus, paid for by the government. The employee who has returned from furlough, must be paid a minimum of £520 each month through to January for the business to qualify for the bonus.
Next up, Rishi Sunak announced the ‘Kickstart Scheme’ which will directly pay employers to create new jobs for any 16-24 year olds at risk of long-term unemployment. They will be decent jobs with a minimum of 25 hours/week and paid at least the National Minimum Wage. The Chancellor says the government will also pay employers £1,000 to take on trainees as well as create places on Level 2 and 3 courses. Regarding apprenticeships, Mr Sunak confirmed the government will give companies £2,000 to encourage them to hire apprentices, or £1,500 for apprentices over the age of 25.
In a bid to get pubs, restaurants, cafes and B&B’s “bustling again”, VAT will be cut from 20% to 5% for the hospitality and tourism sectors from 15th July 2020 to 12th January 2021. The Chancellor also unveiled the “Eat out to help out” scheme which will offer diners a 50% discount (up to £10 per head) when eating out between Monday – Wednesday during August, in participating restaurants.
Rishi Sunak, also announced a temporary change to stamp duty and £2bn “green homes grant” to help make homes more energy efficient.
For more information on what was announced today, please take a look at the following articles:
- Chancellor Rishi Sunak cuts VAT in emergency plan to save jobs
https://www.bbc.co.uk/uk-politics-53268594
- Chancellor gives diners 50% off on eating out
https://www.bbc.co.uk/business-53337170
- Youth, youth, youth is the new build, build, build
https://www.bbc.co.uk/business-53329545
