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.
Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.
The financial conduct authority does not regulate tax advice, estate planning or will writing.
The content in this article is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.
Thresholds, percentage rates and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.
Pareto Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.