Chancellor Rishi Sunak announces 'mini-budget' to reboot economy
Rishi Sunak today announced a 'mini-budget' to outline his economic plan for the country as the coronavirus pandemic eases.
The Chancellor laid out his plans to rebuild the economy and provide a boost to jobs as the furlough scheme winds down.
He said the government cannot protect every job after the furlough but will incentivise employers to bring furloughed employees back.
The government will pay any employer a £1,000 bonus for any employee rehired from furlough and employed through to January.
Sunak qualified the announcement saying: “It's vital people aren’t just returning for the sake of it – they need to be doing decent work. So for businesses to get the bonus, the employee must be paid at least £520 on average, in each month from November to the end of January – the equivalent of the lower earnings limit in national insurance.”
Sunak said that will cover all nine million furloughed employees and the scheme could cost up to £9billion.
"Our message is clear, if you stand by your workers, we will stand by you," said Sunak.
He laid out a three point plan for jobs, firstly to provide jobs, then support jobs, then protect jobs.
He also announced the Kickstart Scheme to give young people the best chances of getting a job.
The scheme will directly pay employers to create new jobs for any 16-24 year olds at risk of unemployment, at a minimum of 25 hours a week, paid at least at the national minimum wage.
If employers meet those conditions the government will pay the wages for six months.
Sunak urged employers across the country to hire as many 'kickstarters' as they can as he released £2billion for new jobs.
When it came to the housing market Sunak temporarily cut stamp duty for any property valued up to £500,000, effective immediately.
He said 9/10 people buying a main home this year will pay no stamp duty at all.
In a welcome boost to the hospitality industry the Chancellor cut VAT on food, accommodation and attractions for six months, from next Wednesday from 20% to 5%.
He said it will benefit over 150,000 businesses in order to help protect 2.4million jobs.
Sunak ended the speech by announcing from the month of August he will give everyone in the country an ‘eat out to help out’ bonus - giving everyone in the country eating at a restaurant on Mon-Weds a 50% discount up to £10 per person.