BRITS can enjoy half-price restaurant meals and cut price day trips this summer as part of a bumper plan to rescue Britain’s coronavirus-ravaged economy.
Rishi Sunak has announced a huge cut to VAT for the hospitality sector to try and get more Brits out and about to boost the nation after months in lockdown.
MEAL DEALS
Brits will be able to dine out from Monday to Wednesday for half price for the whole of August, he said today, giving a much-needed lift to thousands of restaurants, bars, cafes and other establishments suffering from smaller customers.
It could come in the form of meal vouchers for customers, or the restaurant could be told to change their prices and the Treasury later refund them the cash.
And theme parks, hotels and other tourism hotspots will be given a huge lift as the Chancellor announced he would slash VAT for them to keep going.
It’s hoped that the huge slash to their costs will enable them to cut prices for tourists and day-trippers, so they can spend their money on getting the hospitality sector moving again.
Ministers are expected to launch a huge campaign to encourage people to take a staycation in Britain this year rather than holiday abroad to further boost revenues.
Today’s radical plans are designed to save 3.2million jobs in the hospitality industry – which is the 3rd biggest employer in the UK.
A further 2.8m indirectly are involved in the hospitality trade.
He revealed his sweeping plans in an emergency mini budget – known as a summer economic update – to MPs in the House of Commons this lunchtime.
Today he’s also announced:
- A stamp duty holiday for homes up to £500,000 to get the housing market moving
- Vouchers worth up to £5000 each for home-owners to spend on making their places more energy efficient
- A ‘kickstart’ jobs placement programme where the Government will fund 25 hours a week to an employer to take on a young person for at least six months
- A huge boost in apprenticeships – and a £1000 in extra cash for firms who take on trainees
The move comes just four months after he gave his Spring Budget in March – filled with a £30billion economic package to try to protect the country from the economic impact of coronavirus.
Since then he’s splurged billions on the NHS, the huge furlough scheme, and several other big projects to keep the economic engine moving.
Today’s ‘mini budget’ comes just after the prime minister’s “New Deal” speech – promising to plough more cash into building major infrastructure projects to create jobs and growth.
The Government wants to focus on young people, who have been particularly hard hit by the pandemic and are more likely to have lost or will lose their jobs.
STAMP DUTY HOLIDAY
HOAR revealed exclusively last weekend that a stamp duty holiday was on the cards for six months to help boost sales – and was expected from the Autumn.
The temporary measure would remove tax on the purchase of homes to target those most in need of help following the coronavirus crisis.
But Mr Sunak has been forced to bring forward the move because of fears the housing market would freeze while buyers waited for it to come in the autumn.
The move will enable some homes at the lower end of the London housing market to be taken out of stamp duty but crucially would take out hundreds of thousands of properties in the crucial ‘Blue Wall’ seats that handed Boris Johnson his huge election win last year.
Already property prices have started to fall due to the coronavirus disruption.
STATE-FUNDED JOBS FOR YOUNG
The Government will fund thousands of jobs for people who are out of work as part of stage two of their plans to bounce Britain back from coronavirus.
Under the £2billion Kickstart Scheme, the Government will pay towards six months of wage costs of each 16 to 24-year-old hired by employers.
It will cover 100 per cent of the minimum wage for a maximum of 25 hours a week — with firms able to top up wages.
Employers will be able to offer a six-month work placement for people aged between 16 and 24 who are claiming Universal Credit and at risk of long-term unemployment.
An initial £2billion has been put aside for the scheme but the Treasury said it will increase the budget if there is high take-up.
VOUCHERS FOR GREENER HOMES
HOAR also revealed this week the details of the new scheme to help boost a ‘green recovery’.
Hundreds of thousands of households will get the grants of up to £5,000 to make their homes more environmentally friendly.
Vouchers worth up to £10,000 will be available to some of the poorest families.
Homeowners will be able to spend the cash on loft, wall and floor insulation, eco-friendly boilers, heat pumps, double or triple-glazed Âwindows, low-energy lighting and energy-efficient doors.
The scheme will go live in September and, according to Treasury estimates, will save families up to £600 a year on energy bills.
The grants will be part of a wider £3billion investment in green technology to be unveiled as the UK moves towards going carbon neutral by 2050.
The extra £1billion will be spent on revamping public buildings and social housing.
CASH TO HIRE TRAINEES + MORE APPRENTICESHIPS
Every firm who hires an 18-24 year old trainee will get a £1,000 cash bonus, the Chancellor is expected to confirm.
He will pledge £111million to the scheme which will incentivise firms to take on and train young workers struggling to find a job.
