COVID-19: 8th July 2020: UK Government announces further support for businesses

TEE Covid Financial Support

On Wednesday 8 July 2020, Chancellor Rishi Sunak announced further support for businesses with the aim of wanting to  ‘protect, support and create jobs.’

Key Summary:

Furlough Scheme/Job Retention Bonus

The Government are introducing a  job retention bonus for UK employers who will receive a one-off bonus of £1,000 for each furloughed employee (and still employed as of 31 January 2021). The employee must be paid over £520 per month to qualify.

Kickstart Scheme

Young People between the ages of 16 and 24, claiming Universal Credit and at risk of long-term unemployment will be eligible. Funding available for each six-month job placement will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.

The scheme will open for applications in August, with the first jobs expected to start in the autumn and run until December 2021 – with the option of being extended.

VAT Reduction 

VAT reduced for the period 15 July 2020 to 12 January 2021, from 20% to 5% for the following:

  • eat-in or hot takeaway food from restaurants, cafes and pubs
  • accommodation in hotels, B&Bs, campsites and caravan sites
  • attractions like cinemas, theme parks and zoos

Discounts on eating out

The scheme  will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment.

Businesses will be required to register through a website which is launching on Monday 13 July 2020.

The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK.

Participating establishments will be fully reimbursed for the 50% discount.

For further information please visit the GOV.UK website.

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Posted on: Friday 10th July 2020