Mini-Budget – Summer 2020 Statement
Our guide to ‘Mini-Budget’ Summer 2020 Statement aims to provide a clear and concise commentary of the main proposals announced, focusing on the issues pertinent to you, your family and your business.
The Chancellor of the Exchequer, Rishi Sunak, delivered his emergency ‘Mini-Budget’ Summer 2020 Statement to Parliament on Wednesday 8 July, amid the backdrop of a growing threat to the economy from the global outbreak of coronavirus (COVID-19).
Mr Sunak said, ‘People are anxious about losing their jobs and rising unemployment, we’re not just going to accept this.’ He also announced a ‘plan for jobs’ to protect, create and support employment.
At the start of the crisis, the Government provided £160 billion to cushion the economic fallout from the COVID-19 crisis and lockdown. The Chancellor commented that Britain is now entering the second phase of the Government’s economic response.
Mr Sunak said, ‘The job of responding to the crisis has only just begun, and the Government will put the public finances back on a sustainable footing.’
He confirmed the furlough scheme will wind down flexibly and gradually until the end of October. ‘Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before,’ said the Chancellor.
The launch of a new jobs retention bonus will help to wind down the scheme. Businesses will be paid £1,000 to retain furloughed staff. This will cost the Treasury more than £9 billion if every job furloughed is protected.
Amongst other announcements, the Chancellor talked about the ‘kickstart’ job creation scheme for young people, a Stamp Duty Land Tax holiday to reinvigorate the housing market, a Value Added Tax cut from the current rate of 20% to 5% for the next six months on food, accommodation and attractions, and an ‘eat out to help out discount’ to encourage consumers to spend at restaurants and cafes.
All you need to know about the Chancellor’s ‘Mini-Budget’ Summer 2020 Statement
To review what action you may need to take to keep your personal and business plans on track, or if you have any further questions following the Chancellor’s ‘Mini-Budget’ Summer 2020 Statement, please contact us – we’re here to help.