Rishi Sunak has set out emergency plans to keep people in work as the coronavirus crisis hits the economy.
The Chancellor unveiled plans to abolish stamp duty on properties up to £500,000 in England and Northern Ireland under a temporary measure lasting until March 31 2021.
He also announced an “eat out to help out” plan for dining out in August to boost the hospitality industry. People will be able to get a 50% discount per head from Monday to Wednesday, up to a maximum discount of £10 per diner.
Mr Sunak also cut VAT on food, accommodation and attractions from 20% to 5% from July 15 until January 12, a tax cut worth up to £4 billion.
He unveiled the Jobs Retention Bonus, under which firms will be paid £1,000 for each employee they bring back from furlough and continuously employ through to January on an average of at least £520 a month. And he announced a plan for firms to be given £2,000 for each new apprentice they hire under the age of 25 and a new bonus of £1,500 for apprentices over that age.
Mr Sunak said: “We have taken decisive action to protect our economy.
“But people are anxious about losing their jobs, about unemployment rising. We’re not just going to accept this.
“People need to know we will do all we can to give everyone the opportunity of good and secure work.
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“People need to know that although hardship lies ahead, no-one will be left without hope.”
We have been updating you throughout the Chancellor's address and bringing you reaction from business groups around the country.
Main points from today
What did Rishi Sunak promise at his "mini-budget"?
Here are the main points announced by Mr Sunak on Wednesday:
Jobs Retention Bonus
The Chancellor stuck firm to the October deadline for the job retention furlough scheme to end but said it would be replaced with a new Jobs Retention Bonus.
Employers who bring back furloughed staff and continuously employ them through to January we be paid a £1,000 bonus per employee as long as they are paid at least £520 on average a month.
Apprenticeships
Mr Sunak said employers will be paid £1,000 to take on trainees and up to £2,000 to hire young apprentices.
He also outlined a kickstart scheme which will directly pay employers to create "decent" new jobs for any 16 to 24-year-old at risk of long-term unemployment.
Mr Sunak said employers will need to provide training and support to find a permanent job and in return the Government will pay the young people's wages for six months.
Green deal
The Chancellor confirmed a £2 billion "green homes grant" to help homeowners and landlords with vouchers to make their properties more energy efficient.
Dosh for nosh
Mr Sunak announced an 'Eat Out to Help Out' discount among measures to get customers back into restaurants, cafes and pubs.
Meals eaten at any participating business from Monday to Wednesday during August will be 50% cheaper, up to a maximum discount of £10 per head for everyone. Businesses can then claim the money back, with the funds in their bank account within five working days.
VAT cut for hospitality industry
And there was more for the hard-hit hospitality industry as Mr Sunak announced a VAT cut on food, accommodation and attractions from 20% to 5% from July 15 to January 12.
Stamp duty slashed
For the housing market, the Chancellor confirmed that stamp duty was being abolished on transactions below £500,000 until March 31, 2021 - effective immediately.
He said the average stamp duty bill will fall by £4,500 as a result and nearly nine out of 10 people buying a main home this year will pay none at all.
Disappointment from "excluded" workers
Campaign group ExcludedƵ said it was "disappointed" there were no measures for the "three million excluded from meaningful Government Covid-19 support" during the lockdown.
A spokeswoman said: "Whilst we appreciate the importance of the discussions about opening up the economy and the future economic recovery, those excluded have had no meaningful support for well over 100 days.
"With little to no income during this time and loaded with debt, amid so much uncertainty in the coming weeks and months to come, those excluded cannot look forward to the future with any hope."
It added that despite questions from several MPs on the issue, "in his responses, the Chancellor again failed to address the inadequacies in the schemes which do not interlock and have not provided a safety net".
Welcome from tourism industry
British Tourist Authority chairman Sir Patrick McLoughlin said: "The Chancellor's statement today shows the continuing Government commitment to the tourism sector and the millions of people employed within it.
"The package of measures including a major cut to VAT will help the industry as it starts to rebuild and to compete for international visitors while encouraging domestic visitors to get out and enjoy the summer.
"The key for success will be ensuring that we continue to attract domestic and international visitors through the autumn and extend the season."
Lack of support for automotive sector "bitterly disappointing"
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: "Today's announcements to safeguard jobs and encourage consumer spending in some parts of the economy are welcome - but it's bitterly disappointing the Chancellor has stopped short of supporting the restart of one of the Ƶ's most important employers and a driver of growth.
"The automotive sector has been particularly hard hit, with thousands of job losses already announced and many more at risk.
"Of Europe's five biggest economies, Britain now stands alone in failing to provide any dedicated support for its automotive industry, a situation that will only deter future investment."
Call to help growth sectors
Mike Clancy, Prospect general secretary, said: “The Chancellor started his statement saying that ‘nobody will be left without hope’, but there was nothing in his new package for the millions of forgotten freelancers and others who have been left with no hope and no support for months.
“There were welcome measures to support jobs in the package today, but the government still failed to acknowledge that there are some sectors that need extra support so they can retain viable jobs until they can reopen.
“And while we welcome the home insulation plan, today was also a missed opportunity to ramp up the scale of investment in green industries and jobs by committing to large scale projects like new nuclear.
“The Chancellor will have an opportunity to fix these issues in his budget in Autumn, he must listen and act to secure a green economic recovery that leaves nobody behind.”
Tech giant Sage reacts
Sabby Gill, Sage's MD for Ƶ and Ireland, said: “The Chancellor has made for a strong summer of ‘bricks and burgers’ but the absence of a great digital led growth agenda was a missed opportunity to accelerate a plan for all seasons.
“The Government has failed to grasp the inspiring power of opportunity - without a strong package of measures to stimulate entrepreneurship, such as incentives for digital investment, British SMEs stand exposed to future crises and a potential second wave despite the bold steps they are taking to fight back. We need resilient and innovative SMEs to drive global trade and promote growth in the long term.
"SMEs require urgent action and cannot wait until the Autumn Statement, when many are fighting for survival at this moment. We hope to see more on the following measures in the coming weeks to get the economy back to full health as quickly as possible."
Mixed reaction from British Chambers of Commerce
BCC Director General Dr Adam Marshall said: "Businesses will celebrate many of the Chancellor’s announcements today, although it is likely that the scale of the stimulus needed to help the Ƶ economy restart, rebuild and renew will need to be greater still over the coming months.
“Targeted measures to help young people gain work experience and enter the labour market at this challenging time are welcome, and, so too is the focus on a greener recovery and the acceleration of key infrastructure projects.
"The VAT cut will help firms in the hospitality and tourism sectors working hard to restart after many months of lost revenue.
"Over the coming weeks the Chancellor will also need to address the ticking clock on a number of other key concerns - including the impending end of key business loan schemes, and the unanswered question around what support will be offered to businesses and communities that face local lockdowns."
North East England Chamber of Commerce reacts
Jonathan Walker, assistant director of policy, North East England Chamber of Commerce said: “We had called for an economic intervention that recognised the potential for this crisis to entrench regional disparities.
"The Chancellor’s statement contained a number of measures that will provide short-term boosts to parts of our economy, but we continue to be dismayed at the lack of detail when it comes to long-term action to ‘level up’ regions such as ours.
“It was good to see the Chancellor acknowledge how hard the impact of the pandemic has been, and will continue to be, on young people in the early stages of their working lives.
"We hope the measures are effective in enabling them to be prepared for good quality jobs but to work effectively the Kickstarter scheme must not be overly bureaucratic or confusing. The £1,000 for returnees will help some firms but we are concerned this level of funding will be insufficient to make a real difference to a business in financial difficulty.
“Getting people spending in our great hospitality and leisure businesses is essential, but when this sector remains so vulnerable to further lockdowns we would like to see specific support to help them become as safe and resilient as possible.
“In essence the Chancellor’s Statement is too short on long-term strategy. He promised that Government was taking these issues seriously but with business confidence extremely fragile we cannot afford to wait too long for action.
Mixed reaction from HR body
Peter Cheese, chief executive at the CIPD, said: “The £2bn kickstart fund is a bold measure to help get young people into work but employer engagement will prove critical.
"Similar schemes in the past have floundered as employer pick up was low or largely limited to low-paid opportunities in the public or charitable sectors. This scheme may face similar difficulties if it fails to engage with the private sector, especially at a local level. The Government will need to draw on local partnerships and networks to make it work for young people and small employers in particular.”
But he added: "We are not convinced the Job Retention Bonus will provide sufficient incentive to encourage employers to bring workers back from furlough beyond those they would be planning to bring anyway.
“A simpler way of protecting jobs, and especially those of younger people, would be to extend the Job Retention Scheme for key sectors such as hospitality and leisure beyond October. We believe this would be a more effective use of public funds rather than the Job Retention Bonus.”
Cautious welcome from union
John Phillips, GMB acting general secretary, said:
“We will subject the Chancellor's policies to close scrutiny - but what has been outlined today seems to be a good start.
“GMB welcomes investment in the economy and industry, however Ministers must make sure new jobs are good jobs and training opportunities are real. We need action to protect incomes, alongside jobs.
“The Chancellor has to follow-up today's announcements with meaningful, sector-by-sector negotiations as the furlough scheme ends. Some sectors not mentioned today - such as public services and aviation - risk being left behind.
“And let’s not forget there are millions of key workers, struggling by on low pay and still in need of PPE, who can’t make ends meet if they’re sick because the paltry level of statutory sick pay leaves people choosing between keeping a roof over their head or putting their colleagues and family at risk.
“This cash boost must end up in the pockets of those who need it - the workers - not the offshore accounts of shareholders and CEOs.”
Video: Chancellor reveals job retention bonus
Group representing town and city centres calls for more help
Matthews Sims, CEO Croydon BID and founder of the #RaiseTheBar campaign said:“The Chancellor says he will never accept unemployment is unavoidable yet he is turning a blind eye to the hard truth that employees of over 55,000 businesses across England and Wales will soon lose their jobs as their employers have been overlooked and ignored at every turn for financial support.
"55,638 retail, hospitality and leisure businesses are exempt from existing grants and funding schemes, and the very grant that should be their lifeline, the Retail Hospitality and Leisure Grant, is bound by out of date and arbitrary guidance on business rates, with these businesses falling outside of the set eligibility requirements.
"It was revealed earlier this week that local authorities have an underspend of £1.7bn on grants and funding and we are calling on the Government to act now and redirect this surplus to the Retail Hospitality and Leisure Grant and increase the rateable value threshold for eligibility from £51,000 to £150,000.
"Doing this will save jobs, reduce unemployment, protect skills and help restart the hospitality and tourism sectors which the Chancellor today stated are vital to reopening the Ƶ economy.”
Manufacturing group welcomes Chancellor's statement
Welcome for Kickstart scheme
Dr Joe Marshall, Chief Executive of the National Centre for Universities and Business (NCUB), said: “The Government has rightly acknowledged that Covid-19 has hit young people the hardest. Sunak today said that that those aged under 25 are 2.5 times as likely to work in a sector that’s been closed due to Covid.
"The Kickstart scheme is therefore a welcome step to keep youth unemployment down. It is vital to avoid lasting damage to careers that are just beginning, after all they are the future talent the nation needs and will play a crucial role in our economic recovery.
"Skilled graduates in particular are the pipeline of future talent that businesses need, and they will undoubtedly play a crucial part in our economic recovery post Covid. A skills-led recovery is the only way to ensure that every community and all parts of the country begins to recover economically. What’s more, in the long run, successful innovation that leads to economic growth is reliant on the flow of graduates into businesses of all kinds and sizes.”
Rural leaders welcome VAT cut
CLA President Mark Bridgeman said:"After intense lobbying from the Country Land and Business Association, we’re delighted that the Government has cut VAT to help our tourism sector fight back from a devastating start to the year.
“Until now VAT on tourism businesses has been much higher than in other comparable countries putting domestic tourism businesses at a competitive disadvantage to holiday providers overseas.
"This welcome change from Government means more people will be able to afford to enjoy a holiday in the Great British countryside whilst also helping to revive rural economies across the country.
"The next challenge will be to ensure we are able to stimulate demand not just in the short term, but through the less popular winter months too.”
More from the FSB
Federation of Small Businesses (FSB) National Chairman Mike Cherry:
“We’ve always said that the Chancellor should take a jobs first approach to today’s intervention and that’s exactly what he’s done.
“The Chancellor is absolutely right to stress that the job of getting the economy back on its feet has only just begun.
“Will this set of measures be enough to spur activity over the coming weeks? That’s something that will need to be kept under close review – we may need further action before the autumn.
“The key now is making sure these positive new measures work for all, especially the small firms that make-up 99% of our business community and employ 17 million people.
“The job retention bonus must be easy to access. We can’t have paperwork holding up this vital support.
“We pushed for incentives to take on apprenticeships and it’s good to see those delivered today.
“The funding and subsidies for apprenticeships, kickstarter roles and traineeships also need to be accessible. Young people are looking for work now."
Former Chancellor calls for new fiscal rules
Sajid Javid calls for "new fiscal rules" to reduce the levels of public debts.
Rishi Sunak thanks him for his comments.
Response fro mthe Northern Powerhouse
Northern Powerhouse Partnership Director Henri Murison said: “The numbers of unemployed 16-24 year olds in the Northern Powerhouse are some of the highest in the country - the worst being the North East, followed by Yorkshire and the Humber and the North West half way down the list.
"We need to see businesses in the Northern Powerhouse step up and offer opportunities through the Kickstart Scheme as we have greater demand for it here.
“We as a Partnership will ourselves commit to do this, because we need to see the young unemployed getting experience in leading capabilities like energy, health innovation, advanced manufacturing and digital as well as creative industries that have secure longer-term prospects.
“There is still a need for a patient capital fund for Northern businesses to grow, and more local investment capabilities for our Metro Mayors to draw on. We will be steadfast on both those fronts alongside accelerating major infrastructure investment – such as HS2 and Northern Powerhouse Rail – in the impending Autumn spending review, because we need an economic stimulus that supports a transition to a fundamentally more-productive economy.”
CBI response
FSB response
Union response
Dave Prentis, general sectary of the Unison union, tweets: "The Chancellor has firmly closed the door on the damaging austerity of the past decade. But while there’s much for young people, the energy sector and Ƶ businesses to celebrate, there’s little for public services and workers who’ve kept the country going"
Shadow Business Minister responds
Newcastle Central MP Chi Onwurah, a Shadow Business Minister, has tweeted a response to the Chancellor's statement:
"Some welcome measures to protect existing jobs in the but nothing to create new jobs. Jobs will be destroyed as consumers & biz change behaviour. Where is the Chancellor's response? Where is the help to transition to a greener/covid19 proof economy?"
CBI welcomes stamp duty news
Reaction from the Midlands
Maria Machancoses, director of Sub-national Transport Body Midlands Connect, said:
“If we’re going to rebound and recover from the impact of COVID-19, we need a greater emphasis on infrastructure.
"The Chancellor’s announcements have given a much-needed short-term boost to the Ƶ economy, however, by accelerating the development and delivery of long-term projects such as HS2 and Midlands Engine Rail, the Government can create high-value jobs and stimulate sustained investment and regeneration over the next decade. This certainty and commitment is what businesses need.”
“The Prime Minister spoke last week about Project Speed and his intention to streamline the project development process, so improvements across our roads, railways and critical infrastructure, can be moved forward more quickly.
"We need to see more details on how this process will work and ask that Government engages with us now, ahead of further announcements this autumn.”
Chancellor says support could come with conditions
Mr Sunak says "bespoke" support packages for business will come with conditions, including on executive pay and climate obligations.
"The buck stops anywhere but here," says Shadow Chancellor.
Anneliese Dodds ends her statement with criticism of the Government attitude to public services and says the Prime Minister has avoided resonsibility.
Shadow Chancellor says regions, councils and NHS have been neglected
"We must have a new settlement for the future," says Anneliese Dodds.
If taxes are increased and services are cut, it will hamper recovery, she says.
Chancellor takes to Twitter
"The bogoff Chancellor"
Money saying expert Martin Lewis tweets:
"During August everyone gets "Eat out to help out" Mon to Wed - 50% off, up to max discount £10 per person. Businesses then can reclaim.He's stealing my clothes!
becomes the Bogoff chancellor."
Labour calls for extension to furloughing scheme
Shadow Chancellor calls for targeted extention to furloughing scheme, particularly in localised lockdowns.
She asks for support for sectors at risk and says "large parts of industrial British for help to get through this".
Shadow Chancellor criticises Government response
Anneliese Dodds hit out at Government's failure to develop a working test and trace system, and also criticises the Government's sick pay system.
She welcomes backing for tourism and hospitality sector, but says people won't go out and spend until they have confidence in the public health situation.
Shadow Chancellor replies for Labour
"Britain should have had a back to work Budget...but instead we got many of the big decisions put off", says Shadow Chancellor Anneliese Dodds.
Chancellor ends statement
Shadow Chancellor Anneliese Dodds set to reply
Eating out discount scheme for August
Everyone in the Ƶ to get a "eat out to help out" 50% discount during August - up to £10 per person.
Plan for hospitality and tourism
Mr Sunak turns to two of the hardest hit sectors of the economy - hospitality and tourism, which employ 2m people, many of them young.
He says he wants to get cafes and pubs "bustling again" - but he needs to give businesses confidence that demand will be there.
He outlines a VAT reduction (from 20% to 5%) for food and accommodation for the next six months. Describes it as a "£4bn catalyst"
Plans for housing
Mr Sunak points to major slump in house sales.
He says confidence in the housing market is crucial, so he will cut stamp duty. A temporary rise in the stamp duty threshhold (to £500,000) is introduced until next March.
Supporting job creation
Mr Sunak says there will be "historic investment" in infrastructure.
"We are doubling down on our ambition to level up", he says.
He adds that it will be a "green recovery with concern for our environment at its heart" - announces £2bn fund for energy efficiency.
Support package for long-term unemployed
Chancellor announces £1bn with DWP to support people back to work.
Funding for traineeships
Mr Sunak announces financial support for traineeships, especially in growth areas.
He also funds new careers advisors, and support for high-demand sectors.
Employers will also be paid to create new apprenticeships - £2,000 per apprenticeship - plus payment for older apprentices
"Three-point plan for jobs"
Mr Sunak outlines help for younger people, including school leavers, who he says have been hit hardest by coronavirus shutdown.
He announces Kickstart scheme, in which employers get grant for jobs created for 16-24 year olds at risk of long term unemployment.
Government will pay wages for six months plus overheads. Employers can apply to scheme from next month.
"Jobs retention bonus"
Firms will get £1,000 for people brought back off furlough if employee is still in work in January.
Chancellor says work must be meaningful - but policy could affect 9m people and cost up to £9bn.
"Furlough has been a lifeline for millions...but it cannot go on for ever"
Mr Sunak says furlough scheme cannot go on for ever.
He says he won't give people false hope by extending furlough scheme.
Furlough will wind down "flexibly and gradually" until October.
"We will rebuild", says Chancellor
Third phase of coronavirus response will be building back.
Details will come in autumn Budget, says Mr Sunak - including re-building the public finances.
"Second phase of the challenge"
Ƶ economy contracted 25% in two months, Mr Sunak says, and there are projections of significant job losses.
"I want every person in this House that I will never accept unemployment as inevitable"
The nature of the challenge
Mr Sunak says first phase of response to coronavirus was to close businesses and put in place £160bn plan to protect the economy.
He says the intervention protected people's incomes, with the lowest paid protected the most.
The nature of the challenge
Mr Sunak says first phase of response to coronavirus was to close businesses and put in place £160bn plan to protect the economy.
He says the intervention protected people's incomes, with the lowest paid protected the most.
Chancellor begins statement
Rishi Sunak says people are anxious about losing their jobs.
"We're not just going to accept this," he says. "Although hardship lies ahead no-one will be left behind".
He says Government is announcing a "plan for jobs".
Chancellor expected soon
Prime Minister's Questions has come to an end - the Commons chamber is being cleared in readiness for the Chancellor's statement
Chancellor pictured making his way to the Commons
Here’s the Chancellor pictured making his way to the Commons from Downing Street earlier.
North East business leaders lay out concerns
North East business leaders have made a plea for the region’s long-standing inequalities to be tackled as the Ƶ looks to bounce back from the coronavirus pandemic.
With Chancellor Rishi Sunak due to outline plans to kickstart the Ƶ economy tomorrow, the North East England Chamber of Commerce has drawn up a report highlighting a range of issues facing businesses in the region.
The report by the Chamber’s knowledge development manager Arlen Pettitt pulls together a range of official statistics on a range of issues, including unemployment, economic inactivity, public health and skill levels.
Arguing that the North East is a “region of tremendous promise hampered by historic underinvestment, creaking infrastructure and deep socio-economic inequality,” it argues that “what is needed is substantial and sustained support to tackle long term economic inequalities”.
The Chamber’s report follows a similar call earlier this week from the Northern TUC, which said the North East needed investment in infrastructure, public sector spending to be used to support local businesses, and a new green industrial strategy.
Other business groups also want targeted support to ease the impact of the lockdown on companies.
The Chamber report says: “Pre-crisis, the North East was less robust than much of the rest of the Ƶ, with slower GDP growth, higher unemployment, higher economic inactivity and a larger proportion of the workforce inactive with long term sickness.
“During the crisis, North East businesses have been more likely to experience a fall in turnover and export sales, and more of them have reached out for government support than elsewhere in the country.
“After the crisis, extra support will be needed to ensure the region not only keeps pace with the rest of the Ƶ, but also closes the gap (as per the Government’s much trailed ‘levelling up agenda’) and builds resilience for future crises.
“As we move from national lockdowns to local ones, this kind of tailored, sustained support will be even more important to avoid long term economic scarring and an uneven return to economic growth.”