Daily Update 08/07/2020


The chancellor, Rishi Sunak, gave a statement today on the government’s plans to create and protect jobs as well as setting out the government’s initiatives to protect the property market. 

In his statement in the House of Commons the chancellor stated that he would never accept “unemployment as a necessary outcome.” In order to support jobs, the government will implement a jobs retention bonus to reward and incentivise bringing back furloughed staff. The bonus of £1,000 per employee will be paid out to employers that keep furloughed workers in employment until January. In order for employers to be eligible for the scheme employees must be paid at least £520 a month between November, when the furlough scheme will end, and January. 

The government will directly pay employers to create new jobs for young people between the ages of 16 and 25. The scheme will require newly created jobs to provide at minimum of 25 hours a week of work and to pay at least the national minimum wage and will last for up to six months. 

The government will also cut stamp duty on all houses below £500,000. This means that nearly 9 out of 10 people will pay no stamp duty on purchases this year. 

To protect the hospitality sector the government will cut VAT from 20% to 5% for business including cinemas, B&Bs, and other leisure attractions. The government will also launch an “eat out to help out” scheme which will provide a 50% discount on dining out between Monday and Wednesday up to £10 per head.