As the nation slowly emerges from the coronavirus lockdown, Chancellor Rishi Sunak has now announced a new ‘mini-budget’ to help kickstart the UK’s economic recovery. There are some key announcements that will impact potential homebuyers, and Think Plutus has composed a detailed guide to walk you through everything you need to know.
Temporary changes to Stamp Duty Land Tax
There will be a ‘Stamp Duty holiday’ that raises the minimum threshold at which Stamp Duty kicks in from £125,000 to £500,000. This means that as many as 90% of buyers will not have to pay Stamp Duty whilst this is in place, and the hope is that many people will seize this opportunity to save money buying property and reignite the housing market.
VAT cut for the hospitality and tourism sectors
Food (not including alcohol), accommodation and attractions will benefit from a reduction of the rate of VAT from 20% to just 5%. It is hoped this will attract more people to spend in these sectors and bring about a revival of two of the most important parts of the UK economy. Here is an introduction to the key announcements that we cover in detail in our guide.
Eat out to help out
When eating out at participating cafes, restaurants and pubs on Mondays, Tuesdays and Wednesdays, you can benefit from a 50% discount per head up to a maximum of £10. This applies when you are eating a sit-down meal at the venue and will be running throughout August 2020.
Jobs retention bonus
Employers will receive a one-off bonus payment of £1,000 for each worker they bring back from furlough. This is being called the ‘Job Retention Bonus’ and will run through to January 2021 to try and incentivise employers to retain their staff and keep unemployment down as much as possible.
Kickstart jobs scheme
A £2 billion fund has been put aside to help protect young people from the risk of long-term unemployment as new jobs become few and far between. The fund will subsidise new placements for people aged 16-24 on Universal Credit.
Firms will be granted £2,000 for creating new apprenticeship roles, or £1,500 bonuses for apprentices over 25. This initiative should provide a boost for young workers in need of a job in the wake of the pandemic.
Green Homes Grant
Homeowners and Landlords in England will be given vouchers of up to £10,000 for the very poorest households to make improvements to their homes that will increase energy efficiency. This is aimed at creating jobs and reducing emissions.
There has been mixed reaction to many of these announcements, but some of them will be a definite boost to homebuyers. To learn about all of them in greater detail, please check out the Think Plutus guide to the ‘Mini-Budget’ 2020 Summer Statement where we run through each announcement systematically.