Mini-Budget 2020 summary

The Chancellor Rishi Sunak has opened the Treasury chequebook again and unveiled a new set of measures to "protect, support and create jobs" and get pubs and restaurants "bustling again". These include: incentives to encourage businesses to hire new staff; grants to help “green” industries; a stamp duty holiday for home buyers; a VAT reduction for the hospitality sector as well as funding discounts for those eating out.

Creating jobs

The Chancellor has set aside £30bn to help protect and create new jobs. And although any measures to help the job market are welcome there is not much to directly help established contractors.

However, there will be help for:

• Young people - A new £2bn Kickstart Scheme will create government-subsidised jobs for unemployed young people aged between 16-24. The government will cover an amount equivalent to 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.
• Trainees - Businesses will be offered a £1,000 per trainee payment. The grant will be capped at 10 jobs per firm.
• Apprentices - For the next six months, businesses will get up to £2,000 for every new apprentice under 25. It will also pay £1,500 for every new apprentice above 25 hired.
• Finding jobs - The National Careers Service will have funding increased by £32m over the next two years to help unemployed people find jobs.
• Protecting jobs - To protect jobs businesses will receive a £1,000 job retention bonus for every furloughed worker that is brought back and employed until the end of January 2021 (subject to average earnings being more than £520 per month in November, December and January).
• Green jobs - £40m will be set aside to create 5,000 jobs at environmental charities and public authorities; £100m of new funding has been set aside for to assist technology which takes carbon dioxide out of the air; £10m will be given for new electric car development projects.
  Housing
• There will be a stamp duty holiday until March 21 to help kick start the housing market. Homebuyers will not pay tax on the first £500,000 of any property price, saving them an average of £4,500 and up to £15,000.

Hospitality

• The government will introduce a “50% discount for diners” incentive to encourage people to eat out. In August meals eaten at any participating business Monday to Wednesday will be 50% off at up to £10 per head. Some critics have said that although this will help restaurants and pub restaurants it will not help the traditional local pub.
• VAT on food, non-alcoholic drinks, accommodation and attractions has been cut from 20% to 5%, a £4bn boost for the industry, Mr Sunak said. This should mean a reduction in price for the consumer although it will be up to the business in question to adjust prices accordingly.
  Greening the recovery
• The Chancellor announced a £3bn package of green investment to help create thousands of jobs. £1bn has been set aside to help make public sector buildings greener.
• Homeowners can benefit from £2bn of grants to pay for “green” upgrades to make their houses more energy efficient. Vouchers worth up to £5,000 will be issued while poorer households could get up to £10,000 to make the upgrades, such as loft and wall insulation. It will provide at least £2 for every £1 homeowners spend on making their properties more energy efficient and the Treasury expects the measure to support more than 100,000 green jobs.

You can view the complete mini budget here.