Chancellor Rishi Sunak has announced a special coronavirus mini-Budget in the House of Commons today, with billions of pounds being poured into the economy.
The budget is designed to kickstart the economy by getting people back to work and stimulating the housing, hospitality and tourism sectors.
The Chancellor confirmed the job retention furlough scheme would end in October, but has introduced a new Jobs Retention Bonus to encourage bosses to bring back staff.
The £30bn budget is designed to get the country through the economic crisis created by the Covid-19 pandemic.
The key changes announced include:
- A new ‘jobs retention bonus’ of £1,000 for companies who bring back a furloughed employee and keep them through to January
- VAT cut from 20% to 5% for hospitality and tourism sectors from 15 July to 12 January
- Stamp duty threshold rises to £500,000 until 31 March
- People can get 50% off vouchers in August as part of ‘Eating Out to Help Out’ scheme with participating restaurants
- Businesses to be paid £2,000 for new apprenticeship places. The government will also pay young people’s wages for six months, if companies provide training and support to find a permanent job
- A £2bn “green homes grant” to help make homes more energy efficient is also unveiled