Last week, the current Chancellor of the Exchequer, Rishi Sunak, delivered the 2020 Mini-Budget with measures in place intended to shape the economy following the unprecedented impact of the pandemic. We’ve rounded up everything that was announced in the 2020 Mini-Budget and put it all together in a quick and easy to reference guide.
Mini-Budget 2020 round-up
Before we go into detail about 2020 Mini-Budget, here’s a brief overview of how Rishi Sunak plans to tackle issues such as unemployment and recession that have been exacerbated by the pandemic:
- Companies can apply for a £1,000 bonus for every furloughed employee still employed on 31st January
- The Government is offering to pay the wages of 16 to 24-year-olds in apprenticeships for six months
- You can apply for a grant worth up to £10,000 for making energy-saving improvements to your homes
- Funding is also being made available to make public buildings and social housing more energy efficient
- You won’t have to pay Stamp Duty Land Tax on the first £500,000 of the cost of your main home until 31st March 2021
- The VAT on accommodation, attractions and hospitality has been cut from 20% to 5%
- Receive 50% off restaurant meals (up to £10 per off per person) between Mondays and Wednesdays in August
What the Mini-Budget 2020 means to you
Here’s what you need to know about the key announcements of the 2020 Mini-Budget, including what they could mean to you:
Back to work furlough bonus
As an incentive to keep furloughed workers employed, employers can claim £1,000 for every worker who’s paid at least £520 per month that they bring back from furlough and retain until at least the end of January.
The back to work furlough bonus is a great benefit for business owners and employees alike, and will hopefully stem the tide of growing unemployment rates.
Financial support for apprentices
Another incentive for employers to help keep people in work, businesses can receive £2,000 for apprentices aged under 25. This incentivises employers to take on apprentices and should make it easier for younger people to find jobs at the end of their apprenticeship.
Energy efficiency improvement grant
If you’re as concerned about the environment as we are, you’ve probably been looking into ways that you can save energy and make your home a little greener. Under the 2020 Mini-Budget, you can now apply for a grant of up to £10,000 to make energy-saving improvements to your home.
These ‘greener homes grants’ form part of a £3 billion government push towards energy-efficient homes and public buildings. In addition to helping the environment, this should encourage job growth and save people money on their energy bills in the long-term.
Zero Stamp Duty Land Tax
If you’re looking to buy your main property, you’ll be pleased to hear that the Stamp Duty Land Tax (SDLT) threshold has been increased from £125,000 to £500,000 until March 20201. This means that if you purchase your main property (rather than a secondary property) for £500,000 or less, you won’t pay SDLT.
Some feel that Stamp duty has had a detrimental effect on the property market. With house prices increasing exponentially in recent years, this will be a welcome change for those looking to buy and sell property, especially for those who wish to purchase or sell higher-value properties.
Hospitality sector VAT cut
Rishi Sunak’s hospitality VAT cut from 20% to 5% applies to accommodation, attractions and hospitality, meaning that if you own or have a financial stake in a restaurant, hotel or cinema, overheads will reduce, encouraging these businesses to open their doors.
Some restaurants have already announced savings as a result of the VAT cut, which should encourage a return to normal for businesses within the hospitality industry, and create a renewed need for hospitality sector workers.
“Eat out to help out”
Rishi Sunak wants you to “eat out to help out“, but what does this mean? Adults and children can receive a 50% discount of up to £10 to eat out at participating restaurants from Monday to Wednesday between the 3rd and 31st of August 2020.
Although the offer of cheap meals is appealing, it’s important to keep in mind that we’re still not out of the COVID-19 pandemic. If you do choose to go out, don’t forget to maintain social distancing rules and consider wearing a mask or face covering to reduce the spread of the Coronavirus.
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This article may contain information about partner banks, savings accounts, rates and bonus offers which were correct at the time of publication on 17th July 2020.