Last updated 17 July
On 8 July 2020, the Chancellor presented a Summer Economic Update to Parliament. He outlined a ‘Plan for Jobs’ which set out how the government plans to boost job creation in the UK.
The plan includes:
- A Job Retention Bonus to help firms keep furloughed workers. UK employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
- A new £2 billion Kickstart Scheme to create hundreds of thousands of new, fully subsidised jobs for young people across the country. Those aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible. Funding available for each six-month job placement will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.
- A total of £1.6 billion will be invested in scaling up employment support schemes, training and apprenticeships to help people looking for a job. Young people are set to benefit from this.
- The plan will also create tens of thousands of jobs through bringing forward work on £8.8 billion of new infrastructure, decarbonisation and maintenance projects.
- A temporary increase to the Nil Rate Band of Residential SDLT (Stamp Duty) from £125,000 to £500,000 will be introduced until 31 March 2021. This will drive growth and support jobs across the house-building and property sectors.
- The rate of VAT applied on most tourism and hospitality-related activities will be cut from 20% to 5%. You can read detailed guidance on gov.uk.
- A new Eat Out to Help Out discount will support over 129,000 businesses in the hospitality industry. Diners can get 50% off meals and non-alcoholic drinks, up to £10 per person, at participating restaurants, bars and cafes when they eat in. The scheme is valid all day every Monday, Tuesday and Wednesday during August. Participating restaurants and establishments will be reimbursed for the discount they pass onto customers. You can read detailed guidance and information on how to register on gov.uk.
Exemptions to the global advice against non-essential travel
On 4 July the travel advice changed, with exemptions for travelling to certain countries and territories that no longer pose a high risk for British travellers. View the list of exempted destinations. The Government continues to advise against non-essential international travel, except to countries and territories listed.
Staying COVID-19 Secure in 2020: notice
A notice to display to show you have made your workplace COVID-secure is available and has been updated to reflect the change in the 2m social distancing rule. Find the notice here.
Sending your forms to Companies House during the coronavirus outbreak
As an emergency response to Coronavirus, Companies House has developed a temporary online service to upload a number of completed forms and send them to Companies House digitally. The “upload a document” service will now allow users to upload more form types, including Scottish limited and qualifying partnerships, articles and resolutions. Find out more here.
HM Treasury extends tax cut to PPE costs
The temporary removal of VAT on PPE has been extended until the end of October. Find out more here.
Other useful links
Some aspects of business support are devolved. Specific information for businesses and employers in Northern Ireland, Scotland, and Wales is available. In England, Growth Hubs can advise on local and UK Government business support. You can also find helpful business case studies and other useful information on the Coronavirus Business Support Blog.
BEIS Coronavirus (COVID-19) Businesses and Employers Bulletin
The above information has been lifted from recent updates in the Department for Business Energy and Industrial Strategy’s Coronavirus (COVID-19) Businesses and Employers Bulletin. If you would like to sign-up to receive bulletins, click here.
For more information on Coronavirus business support, visit gov.uk/business-support.
For IoD guidance on Coronavirus, visit our Coronavirus Support Hub at iod.com/coronavirus.