Mini-Budget 2020: The key points at a glance

Almost four months ago, Chancellor Rishi Sunak delivered his maiden Budget speech as the Covid crisis flared up. Today, the Chancellor – and the Government – continue with measures in an attempt to prop up the jobs market, prevent a house price crash and try to convince Britons it is safe to go out and have fun again.

Stamp Duty Land Tax
The Chancellor announced an immediate increase in the nil rate band for residential SDLT in England and Northern Ireland, from £125,000 to £500,000. Whilst this does not change the position for first-time buyers who already enjoyed a relief from SDLT on purchases up to £500,000, it will temporarily reduce the amount of SDLT payable at the higher rate for additional dwellings as well as reducing the amount of SDLT payable on transactions over £500,000.
 
Jobs Retention Bonus
Mr Sunak didn’t extend the furlough scheme beyond October despite pressures to do so, but he did announce it would be replaced with a new Jobs Retention Bonus.

Employers who bring back furloughed staff and continuously employ them through to January will be paid a £1,000 bonus per employee. Workers must have been continuously employed and earn an average of more than £520 per month in November, December and January.
 
Apprenticeships
The government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan

Kickstart Scheme
In addition, the government will introduce a new Kickstart Scheme, a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
 
VAT cut for hospitality industry
For the next six months, the VAT applicable to food, accommodation and attractions the following would be reduced to 5% to support businesses severely affected by forced closures and social distancing measures:

• food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs
• hot takeaway food and hot takeaway non-alcoholic beverages
• sleeping accommodation in hotels and similar, campsites, etc
• admission fees charged to enter attractions that are not already eligible for the cultural exemption

The plan will be in effect from July 15 to January 12.
 
Eat Out to Help Out
This will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50% discount.

Green Homes Grant
Mr Sunak revealed a £2 billion Green Homes Grant to help homeowners and landlords make their properties more energy efficient.