Published on: 09 July 2020
Yesterday, the Chancellor of the Exchequer provided an update on the measures HM Treasury would take to support businesses following the COVID-19 pandemic.
The ‘Plan for Jobs’ speech included measures to protect, support and create jobs. The speech also confirmed that the Coronavirus Job Retention Scheme would not be extended beyond the end of October.
Some of the measures announced by the Chancellor include:
- A VAT cut for the tourism and hospitality sectors – with the current rate reduced from 20% to 5%; which will benefit accommodation providers
- A new Job Retention Bonus. This is for employers which bring back individuals which were previously furloughed. If employers keep the employee continuously employed through to January, the UK Government will pay the employer a £1,000 bonus for every individual brought back to work
- A new ‘Kick Start Scheme’ which will pay employers to create new jobs for young people at risk of long-term unemployment
- Further financial support for employers to enable them to create and take on new apprentices
British Marine understands that the VAT reduction for tourism and hospitality businesses will take effect from Wednesday 15 July. The reduction will last until January 12 2021.
For members wishing to stay up-to-date with the latest developments on COVID-19, please visit our dedicated Coronavirus Hub.