8 July 2020 | UK NEWS
The Chancellor of the Exchequer has announced several drastic changes to aid in Britain’s economic recovery following the coronavirus pandemic, warning that “hardship lies ahead”, but declaring that no-one will be left “without hope”.
Rishi Sunak announced a ‘mini Budget’ in the House of Commons today, including plans to lower VAT in the hospitality industry, give out food vouchers for restaurants and offer funding for businesses taking on apprenticeships. He said that the package was worth £30 billion in total.
In his address to the House, Sunak promised to “protect as many jobs as possible” and expressed fear over the future of the country’s youth, saying one of his main fears was “a generation left behind”.
He also said that the Government’s furlough scheme would be wound down until it ends in October; keeping the system any longer, he said, would give some people “false hope” for returning to their former jobs. He added that “the longer people are on furlough, the more likely it is their skills could fade”, claiming that he would “never accept unemployment as an inevitable outcome”.
In a bid to get people back to work, Sunak announced that employers who bring back furloughed staff and keep them on until at least January will receive £1,000 per employee. Given the estimate that there are presently 9 million people on furlough in the UK, this scheme could reportedly cost up to £9 billion.
Addressing the problem of young people seeking work, the Chancellor announced that businesses would be supported in creating new jobs for them, as long as these were paid at least the minimum wage for 25 hours per week. He stated that the Government would cover 6 months of their wages up to January, including overheads, which would amount to around £6,500 per person involved. He further announced that the Government would provide funding for around a quarter of a million new careers advisors to assist in this process.
Customers of the hospitality industry have also received respite on their tax bills, with cuts to VAT on food, accommodation and attractions from 20% to 5%. The Chancellor further announced his “Eat Out to Help Out” discount, which will give 50% off meals eaten in restaurants on Mondays through Wednesdays in August, up to a maximum discount of £10 per head for everyone.
There was an announcement on the stamp duty tax. The new plan will exempt the first £500,000 of all property sales from the tax, meaning that 90% of people buying a home as their main residence will pay no stamp duty at all.
These plans, Sunak said, would be paid for via borrowing and potential tax increases. He added: “Over the medium term, we must, and we will, put our public finances back on a sustainable footing.”
Labour said that the plans did not go far enough, with the party commenting: “We were promised a ‘New Deal’, but what we got was a ‘Meal Deal’.”
In response to the Chancellor’s speech, the Shadow Chancellor, Anneliese Dodds, said: “Today, Mr Speaker, should have been the day, when our Government chose to build a bridge – between what has been done so far and what needs to be done to get our economy moving again.
“It should have been the day when the millions of British people worried about their jobs and their future prospects had a load taken off their shoulders. It should have been the day when we got the UK economy firing again. Today, Britain should have had a back-to-work Budget; but instead, we got this summer statement with many of the big decisions put off until later as the benches opposite know full well.”
The full text of the Chancellor’s ‘Plan for Jobs’ can be read here:
468441027-A-Plan-for-Jobs
