(UK relief package) Value-added tax cuts to help save 1.4m jobs

Business | 9 Jul 2020 10:45 am

UK Chancellor Rishi Sunak announced a "plan for jobs" yesterday to stimulate Britain's battered economy.

Here are the key points:

EATING OUT DISCOUNT

In August, everyone in the UK will be given an "eat out to help out" discount - 50 percent off at participating restaurants, cafes and pubs. It applies for a maximum discount of £10 per head and can be used from Mondays to Wednesdays

Businesses can claim the money back, with funds in their bank account within five working days

The scheme, described as the first of its kind, is designed to help an industry employing 1.8 million people.

VAT CUT

Value-added tax on food, accommodation and attractions will be cut for the next six months from 20 percent to 5 percent - a "£4 billion catalyst" for the sector designed to protect 2.4 million jobs

The cut - from next Wednesday until 12 January - covers food from restaurants, cafes and pubs, accommodation in hotels, B&Bs and caravan sites, and attractions such as cinemas, theme parks and zoos

WORK

A jobs retention bonus will reward employers who bring back workers from furlough with £1,000 per employee - it will cost £9 billion if all nine million of those temporarily laid off come back to work

Government's furlough scheme "cannot and should not go on for ever" and will wind down through to October

£1.2 billion pledged to Department for Work and Pensions "to support millions of people back to work"

Firms will be paid £1,000 to take on trainees, with £100 million pledged to fund places in high-demand sectors such as engineering, construction and social care

£2 billion made available for "Kickstart" scheme for young people - and no cap on the number of places available

Kickstart scheme will pay employers to create new jobs for hundreds of thousands of 16-24 year olds at risk of long-term unemployment - a minimum of 25 hours per week paid at at least the national minimum wage

GREEN MEASURES

Green measures totalling £3 billion aim to make 650,000 homes more energy efficient, save households £300 a year on bills and support 140,000 jobs

£1 billion of funding to improve the energy efficiency of public sector buildings

A £2 billion green homes grant will deliver vouchers to homeowners and landlords to make their homes more energy efficient

-Sky News 

 

 

 

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