Rishi Sunak’s summer statement: What is the Chancellor expected to announce?

Chancellor Rishi Sunak is due to make his summer statement to lift the UK economy on Wednesday Credit: PA Media

Chancellor Rishi Sunak is expected to unveil a range of measures in his summer "mini budget" to lift the UK economy out of its coronavirus-induced slump.  

Mr Sunak who is due to speak in the House of Commons on Wednesday, has already trailed on some of the major topics from protecting jobs to focusing on young people.  

The Treasury already announced the economic stimulus will not be huge, to temper the expectations of MPs, after The Resolution Foundation think tank urged the Chancellor to spend £200 billion to combat a likely 9.3% fall in the economy.   

So, what can we expect as the country emerges from lockdown? 

Rishi Sunak will present the Economic Update to Parliament on Wednesday Credit: Simon Walker/HM Treasury

Cash bonus for firms that hire trainees  

More than £100 million is to be invested in traineeships for young people in the wake of the coronavirus crisis.

Businesses offering new traineeships in England are due to get a £1,000 bonus per trainee under the scheme set to be announced on Wednesday.

As part of a traineeship initiative, which lasts from six weeks to six months, young people receive maths, English and CV writing training and guidance on what to expect in the workplace. 

"The government are making available three times more funding to providers this year to pay for tripling the number of trainees and increasing the funding providers receive for training", a Treasury spokesperson said.

Job Centre Credit: PA

Support for job centres and job seekers  

The number of work coaches is expected to double from 13,500 to 27,000 in a bid to help jobseekers back into employment. 

A Treasury spokesperson said: "The longer someone is out of work, the harder it is to return.

"Doubling the number of work coaches will ensure those in need are given immediate support to get back on their feet and into a job."

The move will cost some £800 million and comes amid predictions of a major recession in the aftermath of the pandemic as GDP (the value of goods and services a country provides) has taken a severe hit during the lockdown. 

As part of the first wave of the nationwide recruitment drive, an extra 4,500 coaches should be in place by October, with more to follow later in the year.  

Stamp duty holiday  

The government is rumoured to raise the threshold at which people start paying stamp duty from £125,000 to as high as £500,000. 

Richard Donnell, research and insight director at Zoopla, said that if the stamp duty threshold is raised to £500,000, “the greatest benefit will be found in markets across southern England where there are more homes with average prices closer to £500,000.

“Housing activity has already rebounded strongly since the market reopened and any major change to stamp duty would provide a further boost to demand for housing,” he added. 

Homes for sale Credit: PA

Green investment worth £3 billion 

In a move to boost low-carbon industries, the government announced on Monday evening a £3 billion package to upgrade buildings and create jobs.  

The financial incentive will give homeowners up to £2 billion towards insulation costs and green home upgrades.

Some of the nation’s poorest households will reportedly be able to access vouchers up to £10,000.  

Public buildings such as schools, hospitals, military bases and prisons will receive £1 billon to pay for measures such as insulation, efficiency and green heating technology to cut emissions and save energy.