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Chancellor Rishi Sunak reveals plans to help the UK economy

 

Chancellor Sunak outlined a series of measures to help the UK’s economy following the COVID-19 lockdown.

 

The government’s economic plan will include an incentive for companies to bring back furloughed employees.

 

Furlough scheme ‘cannot and should not’ go on forever

 

Employers will receive £1,000 per employee they bring back from furlough and keep employed until January. The employee must be paid £520 months each month through to January.

The chancellor confirms there will be no extension to the government’s wage subsidy scheme beyond October.

“The truth is that calling for endless extensions to the furlough scheme is just as irresponsible as it would have been to end the scheme overnight in June,” he said.

“Leaving the scheme open forever gives people false hope that they will be able to return to the jobs they had before.”

 

Help for Hospitality

 

  • Mr Sunak promised to get pubs and restaurants “bustling again” by announcing a huge VAT cut for the hospitality sector and a landmark 50% discount for customers.
  • VAT on food, accommodation and attractions has been cut from 20% to 5%, a £4bn boost for the industry, Mr Sunak said.
  • VAT will be reduced, from next Wednesday until January 12th.
  • Every Briton will be given an “eat out to help out” discount. Meals eaten at any participating business Monday to Wednesday in the month of August will be 50pc off for up to £10 per head.

 

 

Jobs and training

  • Mr Sunak made protecting workers and creating employment the key plank of his mini-Budget. The Chancellor will pay businesses a £1,000 job retention bonus for every furloughed worker that is brought back. If every furloughed worker is brought back, the policy would cost £9bn, Mr Sunak said.
  • Mr Sunak unveiled a new £2bn Kickstart Scheme as a key plank of his “Plan for Jobs”. The fund will create government-subsidised jobs for unemployed young people and employers will be able to offer a six-month placement for people aged between 16-24.  The Treasury will cover 100pc of the National Minimum Wage for each young employee for up to 25 hours a week with firms able to top up the worker’s pay.
  • Some £111m will be invested to triple the number of traineeships with businesses offered a £1,000 per trainee payment. The grant will be capped at 10 jobs per firm.
  • For the next six months, the Government will pay businesses up to £2000 for every new apprentices. It will also pay £1,500 for every new apprentice above 25.
  • An extra £1bn will be invested in the Department for Work and Pensions to help people get back to work.

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