Chancellor Rishi Sunak revealed new policies with a big impact for landlords in his Summer Statement.
Speaking in the House of Commons, Sunak outlined how to government intends to kick start the economy after coronavirus lockdown.
The task is massive, with the economy shrinking and millions of jobs lost during the pandemic.
The solution, say Prime Minister Boris Johnson and Sunak, is to invest in infrastructure to create more jobs.
And more is to come, promised the Chancellor, who disclosed his Summer Statement outlined phase two of the UK’s recovery, with the third instalment expected with his Autumn Budget.
The plans are simple:
- A £1,000 job retention for bonus for employers keeping on workers who have been furloughed until January 31, 2021
- A £2 billion Kickstart Scheme for young workers aged 16 to 24 years old offering jobs paying at least the National Minimum Wage. More money is waiting for training, apprenticeship, and other job support programmes.
- A £3 billion Green Homes Grant to make homes more energy efficient. Every homeowner (which includes landlords) will have the chance to spend a £5,000 voucher – with the government picking up two-thirds of the bill for energy saving improvements.
- VAT is cut to 5% on spending in hotels, pubs, and tourism businesses from July 15, 2020 until January 15, 2021
- The Eat Out to Help Out initiative slashes the tab for anyone eating out Monday to Wednesday during August. The Chancellor picks up the bill for 50% of the cost to a maximum £10 for each diner.
- Stamp duty is wound down to zero for home purchases of up to £500,000 in England, although landlords still pay a 3% surcharge for property investments. The boost is immediate and lasts until March 31, 2021.
“Throughout this crisis I have never been the prisoner of ideology. For me, this has never just been a question of economics, but of values,” said the Chancellor.
“We believe in the nobility of work. We 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 keep and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.”