Your Summer Statement 2020 summary

Published on July 8, 2020

The Chancellor has today released details of the government’s plan to help rebuild the economy and to create and protect jobs. A brief summary of the measures announced are as follows:

A £1,000 bonus for employers for every employee that is brought back from furlough

The Chancellor announced that the government will pay £1,000 for each furloughed employee that an employer brings back to work. In order to qualify the employee must be continuously employed from November 2020 to January 2021. The employment must be ‘meaningful’ in order to qualify for the bonus so each employee must be paid at least £520 a month, on average, from November 2020 to January 2021 – the equivalent of the lower earnings limit for national insurance.

New Kickstart Scheme for young employees and bonuses for employers who hire apprentices

The Chancellor announced the Kickstart Scheme, to create new subsidised jobs for 16-24 year olds claiming universal credit. The scheme, expected to cost around £2bn, will pay the wages of 16-24 year-olds starting new jobs that provide training and support for six months. The scheme will cover 100% of the minimum wage for a maximum of 25 hours a week with firms able to top up wages.

An additional £1.6bn will also be invested into employment support schemes, training and apprenticeships to help people looking for work. Businesses will receive £2,000 for each new apprentice they hire under the age of 25, this is in addition to the £1,000 already available for apprentices aged between 16 and 18 years old and those aged under 25 with an education, health and care plan.

£5,000 green home grant for every household

Grants of up to £5,000 will be made available to cover two thirds of the cost of insulating private residences for all households.  For low income households the grants will cover the full cost up to £10k.  This will support around 140,000 green jobs and reduce carbon emissions.

Stamp Duty Land Tax holiday for residential property up to £500,000

With the recent fall in house prices and the sales of homes dropping by over 50% in May, as a way to boost the housing market, the Chancellor announced a temporary cut to stamp duty land tax for residential properties. The reduction will come in with immediate effect and will run until the 31st March 2021. From today there will be no stamp duty land tax to pay on residential property transactions in respect of the first £500k of the consideration.

Hospitality and Tourism

In an effort to kick start the hospitality and tourism sector, VAT for hospitality and tourism related activities will be cut for 6 months to 5%. This will take effect from Wednesday 15th July and will continue until January 12th 2021. It is anticipated that this will apply to hotels, campsites, holiday lets, B&B’s, restaurants, pubs, cafes, takeaways, cinemas, theme parks, zoos etc.  Alcoholic drinks are not included.

In addition, throughout August a new “Eat Out to Help Out” discount will be introduced, this will give a 50% discount, capped at £10-per-head for every diner eating out from Monday to Wednesday in the month of August.  To be eligible for this scheme businesses will need to register online from next Monday.

If you have any questions on any of the above please do not hesitate to contact your usual RPG contact.

We have received an excellent service from the team at RPG for well over 20 years. We particularly appreciate RPG's real interest in our company and suggestions for improvements. The service RPG provides goes well beyond what we could expect.  The attention to detail and the prompt, professional service the team provides means that we are reassured that should we require urgent or unusual advice, the team will provide it. We would have no hesitation in recommending RPG.

Margaret Peasegood

Executive Chairman - SheffProp

I would like to thank RPG for your unbelievable help, assistance and friendship for over 40 years. Nothing has ever been too much trouble. Words alone are insufficient, and I think that the same would apply to my former colleagues and my family who have also come to rely on your advice and guidance.

Neville Johnson

Founder - Neville Johnson Offices

We have worked with RPG for many years, for good reason. They are not only extremely knowledge but they really take the time to get to know you as customers and also as people. This really makes a difference, as whilst it is of course important that you receive great service, which we do, it’s also essential to work with professionals who you can really trust and who go out of their way to know your business as well as you do, giving ultimate comfort that you are all striving towards the same goals. I cannot recommend them highly enough.

Jennie Johnson MBE

Kids Allowed

“RPG have always been our first point of call for advice on accounting, tax and financial regulatory matters and indeed have become an additional sounding board for both myself and my colleagues on strategic matters. The consistently high quality and timely advice they provide is very important to us.”

Gareth Rowe

Chief Financial Officer - ProofID

“As a family business we have been using Royce Peeling Green as our accountants for over 25 years. We have always been impressed with their expertise and depth of knowledge in all financial areas required to help run our business. There is an obvious understanding and trust between the two companies which leads to proactive approach to guide us with short and long-term financial planning. We have found everyone at Royce Peeling Green to be very approachable providing us with the reassurance that they will always provide a professional response in a timely manner.”

David Harrabin

Managing Director - Manchester Slate Ltd

RPG have now acted for our various companies for over 15 years. Their advice and commercial attitude in dealing with Tax, Audit and general businesses matters has always been of high quality and queries dealt with promptly. The team at RPG are experts in their field, they understand the SME market place well. They have been involved in all our corporate transactions, from setting up of businesses, ongoing support of our management teams through to being part of the team that negotiated the successful sale of a group company.

Jonathan Hamburger

Genesis Group International

We have received a first rate service from RPG over many years. We appreciate their attention to detail and the timely, professional and pro-active advice they provide. We would have no hesitation in recommending the team at RPG.

Stephen Rector

Managing Director – Ribble Packaging Limited