Rishi Sunak’s ‘mini budget’

· The chancellors announcement on the 8 July provided a series of incentives and schemes to further help struggling companies and to support the UK’s economic recovery from COVID-19.

· Job Retention Bonus: For each furloughed employee who is still employed as of 31st January 2021, the employer will receive a one-off £1,000 bonus. The employees must have been paid an average of at least £529 per month from November to January.

· The Kickstart Scheme: Young people aged 16-24 claiming Universal Credit, and at risk of long-term unemployment, will be eligible for the £2 billion scheme. The scheme will fund the National Minimum Wage for 25 hours a week for each six-month job placement, which can be topped up by employers.

· Apprenticeships: Businesses will be given £2,000 for each new apprentice hired under the age of 25.

· Infrastructure Spending: Work on £8.8billion of new infrastructure, decarbonisation and maintenance projects will be brought forward in order to create thousands of new jobs and as a benefit for SMEs.

· Green Homes Grant: Homeowners and landlords will be able to apply for vouchers to pay for green improvements for their home as part of a new £3billion green investment package. The government will pay at least two-thirds of the cost of the work up to £5,000, with those on lowest incomes being covered up to £10,000. It could help to create around 140,000 green jobs.

· Eat Out to Help Out discount scheme: From Monday to Wednesday every week throughout August, the government with subsidise 50% reduction of up to £10 a head, for sit-down meals in restaurants, cafes and pubs. Food establishments should register from 13th July on the government website and should expect to be refunded within 5 business days.

· VAT reduction: The rate of VAT applied on most tourism and hospitality-related activities will be cut from 20% to 5% from 15th July 2020 and 12th January 2021.

· Additionally, the Corporate Insolvency and Governance Act 2020 was passed which will bring in the new Moratorium. This will impose temporary restriction against bringing winding actions against companies and will relax rules around wrongful trading.

If there is any information you wish to discuss further, please contact one of our partners.

This article is prepared with the intention of providing general information on the changes in law. Philip Ross Solicitors accept no responsibility for errors it may contain and the coverage of the topic is not comprehensive. You are advised to speak directly to the writer or another partner within this firm with any specific enquiries on the topic addressed.

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Georgina is a solicitor with nearly 30 years of experience in advising substantial businesses on complex legal issues and providing strategic and commercial solutions.