Government Summer Budget aims to rescue jobs market
The Government Summer Budget on the 8th July aims to rescue the UK jobs market. The Government plan to spend several billions on job creation and tax cuts. Some of the main points are listed below.
What are the job scheme details?
- Job Retention Bonus. Introduced to help firms keep furloughed workers. UK Employers will receive a one-off bonus of £1,000 if they keep on furloughed workers. Paid in January 2021.
- Kickstart scheme for young people. For people aged between 16 and 25. The Government will subsidise employers the cost of the minimum wage for 25 hours a week per employee. Each job under the scheme lasts for 6 months.
- New Apprentice subsidy. Employers will receive £2,000 per person they take on as an apprentice.
- More money for Traineeships. An extra £111 million set aside to help provide more training for young workers on Traineeships.
- Work coaches. An extra £900 million set aside for the Government to employ extra ‘work coaches’ who help young people settle into work and training.
What about Infrastructure spending?
- Green Investment Package. £3 billion set aside for grants and funding to be used for insulation and double glazing.
- Hospital & School Maintenance Programme. £2.26 billion for work to hospitals, colleges and schools.
- Local Infrastructure Programme. £1 billion for unspecified local projects.
- Road and Courts Maintenance. £100 million for local roads and £142 million for Court refurbishment.
What about taxes?
- VAT reductions. VAT will be cut for some parts of the economy, such as tourism and leisure.
- Stamp Duty. This will be removed for house sales under £500,000.
What do the Government and Opposition say?
Both the Tory Government and Labour Opposition have commented on the Government Summer Budget.
For the Government, Rishi Sunak MP stated;
“For me, this has never just been a question of economics, but of values.
We believe in the nobility of work…believe in the inspiring power of opportunity. We believe in the British people’s fortitude and endurance.
Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country….(and) give young people a better start. To give people everywhere the opportunity of a fresh start.”
For the Opposition, Anneliese Dodds MP stated;
“The money sunk into the Job Retention Scheme must not have merely served to postpone unemployment….
The scheme must now live up to its name – supporting employment in industries which are viable in the long term…
There is still time to avoid additional floods of redundancy notices.
“Labour is not calling for tax rises – we are calling for growth….
It’s the Chancellor’s job to make sure the economy bounces back from this crisis so there is money in the coffers to protect the public finances.”
Learn more about the Government and Opposition view here;
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