On 8th July, Chancellor Rishi Sunak delivered his summer economic update in which he outlined the government\u2019s \u201cPlan for Jobs\u201d, with a focus on the creation, support and protection of jobs while acknowledging the challenges that will bring.<\/p>\n\n\n\n
Here are the key announcements of the statement:<\/p>\n\n\n\n
While Mr Sunak confirmed that the Coronavirus Job Retention Scheme (aka Furlough Scheme), won\u2019t be extended beyond October, he did announce a Job Retention Bonus. This will see employers receive \u00a31000 for each furloughed employee that they bring back to work and retain until January 2021. <\/p>\n\n\n\n
For a business to be eligible, the affected employees must earn above the lower earnings limit (\u00a3520 per month) for the three month period between November 2020 and January 2021. <\/p>\n\n\n\n
Further details about the Job Retention Bonus scheme are due to be released by the Treasury by the end of July.<\/p>\n\n\n\n
In a bid to stimulate the housing market post-pandemic, the Chancellor also announced a stamp duty holiday for house purchases below \u00a3500,000 until 31st March 2021 , in England and Northern Ireland. This means that the majority of purchases will be exempt from stamp duty, saving home-buyers up to \u00a315,000).<\/p>\n\n\n\n
Additional measures were announced specifically for the hospitality sector including a temporary reduction in the rate of VAT charged. A reduced rate of 5% will apply to certain supplies of food, drink, accommodation and attractions from 15th July 2020 up to 12th January 2021, although alcoholic drinks will continue to attract VAT at 20%. <\/p>\n\n\n\n
A new \u00a32 billion fund designed to create jobs for young people at risk of long-term unemployment. This plan will see the government fund six-month job placements for 350,000 18-24 year olds. The funding available for each placement will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated National Insurance contributions and employer minimum automatic enrolment contributions, in a bid to lower unemployment among the younger population.<\/p>\n\n\n\n
The Kickstart Scheme will be accompanied by investment in traineeships and apprenticeships, job centres and the National Careers Service.<\/p>\n\n\n\n
While IR35 and the off-payroll private sector reforms did not get a mention in the Chancellor\u2019s speech, it was referred to in the \u201cPlan for Jobs\u201d published soon after.<\/p>\n\n\n\n
Here it was claimed that delaying the reforms from April 2020 to April 2021 means that \u201cbusinesses and individuals do not need to implement and adjust to the reform while dealing with the economic impact of Covid-19\u201d.<\/em><\/p>\n\n\n\n We think this is misguided. The economic repercussions of Coronavirus will reach well beyond April 2021. Businesses have no choice but to properly prepare for the IR35 off-payroll changes, while continuing to bear the economic fallout of Covid, or they risk losing key contingent workers at a critical time.<\/p>\n\n\n\n Rishi Sunak confirmed that the next Budget will take place in the Autumn, and noted that he would deal with \u201cthe challenges facing our public finances\u201d<\/em>. We expect significant changes, ahead, with no doubt more storms to bear.<\/p>\n\n\n\n As the economy starts to open up, we at Liquid Friday are more committed than ever to our contractors and agency partners, making assignments, compliance and payroll as smooth and easy as possible for all concerned.<\/p>\n","protected":false},"excerpt":{"rendered":" On 8th July, Chancellor Rishi Sunak delivered his summer economic update in which he outlined the government\u2019s \u201cPlan for Jobs\u201d, with a focus on the creation, support and protection of jobs while acknowledging the challenges that will bring. Here are the key announcements of the statement: Job Retention Bonus While Mr Sunak confirmed that the […]<\/p>\n","protected":false},"author":3,"featured_media":3741,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[26,27,51],"tags":[],"acf":[],"yoast_head":"\nAutumn Budget<\/h2>\n\n\n\n
Make Liquid Friday your new normal<\/h2>\n\n\n\n