Rishi Sunak's emergency mini-budget at a glance, from stamp duty to meal vouchers

Rishi Sunak has unveiled a package of measures to alleviate the pressures on the economy ahead of a looming recession and anticipated rising levels of unemployment in the UK as the coronavirus lockdown is eased.

Outlining the scale of the challenge ahead, the chancellor told MPs the UK economy had contracted by 25 per cent in two months – the “same amount it grew in the previous 18 years”.

Here The Independent looks at the headline policies announced by Mr Sunak in his emergency summer economic update to MPs. In total the package announced today is expected to cost the Treasury around £30bn.

Stamp duty scrapped for homes under £500,000

In an attempt to kickstart the stalled housing market, Mr Sunak said during the statement he was increasing the stamp duty threshold from £125,000 to £500,000 that will take effect immediately – a temporary measure until March 2021. He said this would benefit nine in ten homebuyers, saving £4,500 on average.

“Uncertainty abounds in the market – a market we need to be thriving,” he told MPs.

Job Retention scheme bonus

The chancellor said employers that bring back an individual who was furloughed during the coronavirus lockdown – and continuously employ them until the start of the new year – will be paid a £1,000 bonus per employee. He said the cost of the bonus scheme would cost £9bn if all employers took full advantage.

‘Kickstart scheme’ for young people

The new scheme will directly pay employers to create new jobs for any 16-24 year-olds “at risk of long-term unemployment” due to the crisis, Mr Sunak said. The chancellor insisted these jobs, with a minimum of 25 hours per week, will paid at least the government’s national minimum wage. It is expected individuals will be in the first jobs by the autumn, with an initial £2bn set aside for the scheme.

“If employers meet these conditions, we will pay young people’s wages for six months, plus and amount to cover overheads,” he told MPs.

Meal vouchers for all citizens

In an attempt to get customers back into restaurants, bars and cafes as the lockdown eases the chancellor announced everyone in the country will be eligible for “Eat Out to Help Out” vouchers.

Meals eaten at businesses participating in the scheme, which will run Monday to Wednesday’s next month, will be 50 per cent off per head, Mr Sunak said.

“Businesses will need to register, and can do so through a simple website, open next Monday. Each week in August, businesses can then claim the money back, with the funds in their bank account within five days.”

VAT slashed for hospitality sector

In addition to the meals vouchers, Mr Sunak said for the next six months VAT, which is currently 20 per cent, will be cut to five per cent on food, accommodation and attractions.

“This is a £4bn catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs,” he claimed.

Green homes grant

The chancellor added as part of the economic recovery he wanted to place the environment at “its heart”, including a £2bn Green homes grant. A further £1bn will be made available to improve the energy efficiency of public sector buildings, he said.

“From September, homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient and create local jobs,” Mr Sunak said. “The grants will cover at least two thirds of the cost, up to £5,000 per household. And for low income households, we’ll go even further with vouchers covering the full cost – up to £10,000.

Source: UK Politics - www.independent.co.uk