A VAT cut, an 'Eat out, help out' voucher scheme plus a £9bn Job Retention Bonus and Kickstarter Scheme were all announced by Rishi Sunak
'People are anxious about losing their jobs. We're not just going to accept this... people need to know that although hardship lies ahead no-one will be left without hope,' said Sunak in the House of Commons today (8 July 2020).
The measures introduced were:
VAT cut to 5% The current 20% VAT charge in hospitality will be cut to 5% on food and accommodation for the next six months. This will come into force on 12 July and end of 12 January 2020.
Eat out, help out Everyone in the country (including children) to get a voucher to get 50% off bills, up to £10/person, Mondays to Wednesdays. Business can register on a website which will open next Monday 13 July, and each week participating businesses can claim the money back. The money will be reimbursed within five working days
Jobs Retention Bonus If you're an employer and you bring someone back from furlough (and keep them on to January) the government will pay a £1,000 bonus per staff member. The employee must be paid at least £520 a month. 'If you stand by your workers, we will stand by you,' said Sunak
Kickstart Scheme To give young people the best possible chance of getting a job, the government will directly pay employers who create jobs for 18-24 year olds, and employ them for a minimum of 25 hours/week on minimum wage. They will also pay young peoples' wages for six months and employees can apply from August.
There were also boosts to apprenticeship schemes and £1bn in funding to the DWP to help unemployed people back to work
Sunak will be announcing further budget and spending reviews in the autumn.