Today Chancellor Rishi Sunak gave his summer economic update to the House of Commons.
In what has been an increasingly difficult year for the British economy, Sunak promised that “although hardship lies ahead, no one will be left without hope.”
This statement comes in conjunction with the chancellors new £30bn package of measures to kick start the UK economy.
These measures include
- A £1,000 bonus for each worker that companies bring back from furlough and employ through to January next year;
- A “kickstart scheme” to directly pay firms to create jobs for 16 to 24-year-olds
- Cash for businesses to take on trainees and apprentices
- An eight-month temporary cut in stamp duty, with no charge on property transactions below £500,000;
- A cut in VAT on food, accommodation and attractions from 20% to 5% until 12 January
- An “Eat Out to Help Out” discount of up to £10 per head to get Britons back to restaurants, cafes and pubs.
The chancellor also rejected calls to extend the furlough scheme beyond October, saying it would give people “false hope” that they will have a job to return to. As of July 5th, more than £27bn had been claimed in furlough payments for 9.4m jobs.
“Rishi Sunak’s summer economic statement promised jobs, jobs, jobs and today we are seeing this turn into action, action, action. These new measures to help boost the economy and the jobs market through investment and support are very welcome and come at a vital time for the economy.” Comments James Reed, Chairman of job board site REED
“The government has had to think creatively and constructively to understand the pressure points within the economy and the industries that continue to be blighted by the coronavirus pandemic. Announcements such as the ‘jobs retention bonus’ should hopefully preserve jobs, while the billions of pounds worth of infrastructure investment will create more badly needed jobs.
The cuts to VAT in the hospitality industry as well as the “eat out to help out” scheme will help stimulate the economy further, but the danger of high unemployment remains. There’s no doubt the chancellor could’ve gone further in helping to unleash the economic fightback. Reforming and reducing national insurance for employers and employees, developing smarter employment law which is less process-driven and expanding research and development will help in supporting employers and employees during this difficult time”
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