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The summer economic update explained

The summer economic update explained

The chancellor Rishi Sunak stood up to deliver his Summer Economic Update today amid great expectation around what further coronavirus economic recovery measures he might have in his arsenal.

Here, we take a closer look at some of the key announcements for our members.

At work

The chancellor confirmed that the Jobs Retention Scheme that enabled some employers - including many dental and legal practices - to furlough staff on up to 80% of their wages will be wound down by October 31 this year.

He also announced a new Job Retention Bonus, that will pay employers £1,000 for each furloughed colleague who returns to work and is still employed as of 31 January 2021.

Anything that supports businesses to keep people in work can only be well received right now and the government's focus on maintaining employment is like nothing we have seen before.

In a further move to improve opportunities for younger people in particular, the chancellor hailed a new £2bn Kickstart Scheme, which will see the government pay the national minimum wage of employees aged 16 to 24 for the first six months where new jobs have been created.

Legal and dental practices may also benefit from the announcement that, from September, employers in England will be paid £2,000 for each new apprentice hired aged under the age of 25, and £1,500 for those aged 25 and over.

This is in addition to any applicable existing Government incentive payments.

At home

For house buyers, a temporary cut to residential Stamp Duty will mean they no longer have to pay the tax on properties costing up to £500,000, up from £125,000.

The change comes in with immediate effect and applies until 31 March 2021 in England and Northern Ireland.

The chancellor said the cut means nearly nine out of ten people getting on or moving up the property ladder will pay no Stamp Duty at all.

Homeowners will also be able to benefit from a new Green Homes Grant, which will see the government pay at least two-thirds of the cost of any home improvements that save energy and are carried out by accredited local suppliers.

It's designed to get more homeowners and landlords to install measures like loft, wall and floor insulation that can make homes more energy efficient, cutting emissions and energy bills.

The scheme, which launches in September, is worth up to £5,000 per household and includes £1bn for public buildings, including schools and hospitals.

Out and about

The chancellor handed a six-month VAT cut from 20% to 5% to the beleaguered hospitality and tourism sectors, including restaurants, cafes and pubs, which consumers will be hoping is passed on in the form of lower prices.

And, in another move to tempt us back into cafes, pubs and restaurants, diners can enjoy a discount of up to £10 per person when they eat out at eligible businesses on a Monday to Wednesday during August.

If you would like further information on any of the topics covered in our overview, book a one-to-one meeting with your local Wesleyan Financial Services Consultant at a time that suits you.

Please call 0800 980 0522, quoting 1002367 (lines are open Monday to Friday 9am to 5pm).

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