Sunak’s Mighty Mini Budget – The Summary

With Wednesday’s unveiling of a mini budget of £30bn designed to protect, support, and create jobs, get customers into bars and restaurants, and stimulate the housing market, Rishi Sunak has once again shown his bold commitment to our economy.

From the long-awaited change to stamp duty, to ambitious plans for a green economy, here is our overview of the key points: the stamp duty threshold has increased to 500k. The long-rumoured changes have finally arrived… albeit temporarily. Starting immediately, homebuyers will be exempt from stamp duty on the value of their property up to £500k. The previous threshold was £125k, and analysts suggest this change could save buyers an average of £4.5k on their sales. This change is temporary, however, though will remain in place until late March 2022.

The mini budget includes green upgrade grants. With £2bn on the table to contribute towards homeowners making energy-efficient upgrades to their properties, the treasury is looking to create jobs, and improve our carbon footprint. Households will be entitled to receive a grant of up to £5000 to help pay for qualifying ‘green’ upgrades such as wall or loft insulation. This will cover £2 for every £1 spent on these improvements. The Chancellor says this is expected to create around 100,000 new jobs to support the demand this will create.

The green shoots of recovery. Alongside the green housing grants mentioned above, a further £40m has been put on the table to create 5,000 jobs within environmental charities and public authorities. Alongside this, further significant sums have been committed to electric car development and technology for improving air quality.

VAT relief and discount dining. Food, soft drinks, accommodation, and attractions will see VAT slashed from 20% to 5%. Mr. Sunak has described this as a £4bn boost across the industry. Something that is much needed for one of the hardest-hit sectors.

Diners will also get a slice of the savings. To help encourage people to visit restaurants and bars, the chancellor is pushing an “eat out to help out” message. And to sweeten the deal, meals purchased at any venue taking part in the scheme on Monday, Tuesday, or Wednesday during August will be half price.

Reward scheme for employers. Firms that have retained staff through the furlough scheme are being offered a £1000 bonus for every employee they bring back and keep in employment until January 2021. At a potential cost of £9bn, the Chancellor is hoping this incentive will help support employers through the post lockdown period.

A plan for jobs. At the heart of the newly announced ‘Plan for Jobs’ scheme is a £2bn fund that will create jobs for unemployed 16-24-year-olds. The treasury is committing £2bn to cover 100% of minimum wage for 25 hours a week, with employers able to top up their worker’s pay.

A further £111m has been committed to encouraging businesses to take on more trainees, with firms being offered a £1000 payment for every trainee they take on, up to a maximum of ten trainees. And over the next six months, the treasury will give businesses up to £2000 for each apprentice they hire.