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UK coronavirus live: Rishi Sunak unveils furlough bonus, stamp duty cut and August discount for eating out UK coronavirus live: Rishi Sunak unveils furlough bonus, stamp duty cut and August discount for eating out
(31 minutes later)
Chancellor making summer statement in the Commons on UK economic recovery from pandemic Chancellor delivers summer statement in the Commons on UK economic recovery from pandemic
The Treasury’s plan for jobs document, giving all the details of the measures announced today, is now on its website here.
Fourteen day quarantine restrictions for travellers from Spain will remain in force, Nicola Sturgeon has announced, as she confirmed that Scotland will provide air corridors with the 39 countries on the “green list” already agreed by the UK government.
But Sturgeon said that she could not give air corridors to “amber countries” which have higher prevalence of coronavirus than Scotland, such as Spain and Serbia. She said that she hoped to lift the exemption for Spain as soon as possible and would review the decision on July 20.
Yesterday, Sturgeon said that she would not simply rubber stamp the UK government’s air bridge routes, despite pressure from the air and tourism industry.
Today she again referenced the recent lockdown in Melbourne following a second spike in cases that may be due to visitors coming to Australia. She said:
She added that travellers could not get around the quarantine requirements by flying to airports in England, because passenger information would be shared with Public Health Scotland. Scottish travellers from England, or indeed Scots who travel to Portugal then journey to Spain overland, will not be able to avoid these spot checks, she insisted.
Sturgeon made the travel announcements as she confirmed there had been one more death in the last 24 hours, and an additional 7 positive cases, while the latest weekly figures from the National Records of Scotland show there were 17 Covid-related deaths last week, taking the total to 4,173.
Anneliese Dodds responded to Rishi Sunak’s statment in the Commons on behalf of Labour. It was her first major outing in the chambers as shadow chancellor. Here are the main points from what she said.
Dodds criticised Sunak for lack of ambition, saying he should have announced a full “back to work budget” instead. She said:
She accepted that the government had to take difficult decisions. But she said:
She said the furlough scheme should have been extended for some sectors. She said:
She said the government needed a better public health response. She said:
She criticised the test and trace scheme. She said:
She said Sunak should have done more to address “the low-value and limited scope of sick pay, risking people’s ability to self-isolate”.
The hefty cut on VAT on food, accomodation and tourist attractions runs until next January.... but Rishi Sunak could come under pressure to make it permanent.
So argues Mark Agnew, partner in the Tax practice at Baker McKenzie:
The struggling childcare sector is disappointed by the chancellor’s statement, our colleague Sally Weale reports.
They describe it as “unfathomable” that the government had failed once again to commit to any additional financial support, despite the fact that one in four nurseries, pre-schools and childminders fear they will have to close within the year.
Neil Leitch, chief executive of the Early Years Alliance, said the government was ignoring the fact that the childcare sector in this country is in crisis.
Here is some snap reaction to the announcement from economic commentators.
From Paul Johnson, director of the IFS
From ITV’s Robert Peston
From Sky’s Ed Conway
Today’s measures are welcome, but they don’t add up to a new major macro-economic stimulus package, tweets Torsten Bell of Resolution Foundation:Today’s measures are welcome, but they don’t add up to a new major macro-economic stimulus package, tweets Torsten Bell of Resolution Foundation:
The City may agree -- the pound is resolutely unmoved by Rishi Sunak’s statement, unchanged today at $1.255 against the US dollar. The City may agree - the pound is resolutely unmoved by Rishi Sunak’s statement, unchanged today at $1.254 against the US dollar.
The Treasury has not published a “red book”, the document that normally accompanies a budget with 100 pages or so of detail, but it has produced a 27-page paper summarising the announcements. It is not on the Treasury website yet.The Treasury has not published a “red book”, the document that normally accompanies a budget with 100 pages or so of detail, but it has produced a 27-page paper summarising the announcements. It is not on the Treasury website yet.
Here is the key chart from the document, showing how much the measures announced today will cost.Here is the key chart from the document, showing how much the measures announced today will cost.
The Stamp Duty holiday on properties sold for less than £500,000 is likely to support the market, and prop up house prices.The Stamp Duty holiday on properties sold for less than £500,000 is likely to support the market, and prop up house prices.
Shares in house builders Persimmon and Barratt Development have gained 1%, with London estate Foxtons up 2.5%, as City traders anticipate a pick-up in housing demand between now and next March.Shares in house builders Persimmon and Barratt Development have gained 1%, with London estate Foxtons up 2.5%, as City traders anticipate a pick-up in housing demand between now and next March.
It’s also likely to push prices up as people “take the plunge” into the housing market, says Mark Peck, head of residential at estate agent Cheffins:It’s also likely to push prices up as people “take the plunge” into the housing market, says Mark Peck, head of residential at estate agent Cheffins:
Here is the Treasury news release summing up these announcements.Here is the Treasury news release summing up these announcements.
Sunak says he believes in values.Sunak says he believes in values.
He says he believes in endurance.He says he believes in endurance.
And that’s it. Sunak has finished.And that’s it. Sunak has finished.
Sunak says his final measure has never been tried in this country.Sunak says his final measure has never been tried in this country.
It is an “eat out to help out scheme”, offering customers as discount worth up to £10 per head when they eat out from Monday to Wednesday in August.It is an “eat out to help out scheme”, offering customers as discount worth up to £10 per head when they eat out from Monday to Wednesday in August.
Sunak says he has two measures to get these sectors moving.Sunak says he has two measures to get these sectors moving.
VAT on tourism and hospitality is at 20%.VAT on tourism and hospitality is at 20%.
It will be cut to 5% until January, he says.It will be cut to 5% until January, he says.
This is worth £4.5bn, he says.This is worth £4.5bn, he says.
Sunak says 80% of hospitality firms stopped trading in April.Sunak says 80% of hospitality firms stopped trading in April.
The best jobs programme is to restart these sectors, he says.The best jobs programme is to restart these sectors, he says.
People are cautious about going out, he says.People are cautious about going out, he says.
But if people are careful, we can all enjoy summer safely.But if people are careful, we can all enjoy summer safely.
Turning to housing, Sunak says house building support nearly 750,000 jobs.Turning to housing, Sunak says house building support nearly 750,000 jobs.
But property transactions fell by 50% in May.But property transactions fell by 50% in May.
Uncertainty abounds in the market, he says.Uncertainty abounds in the market, he says.
Yet they need people to be confident.Yet they need people to be confident.
Sunak says stamp duty will be abolished on homes worth up to £500,000. The cut will last until 31 March 2021.Sunak says stamp duty will be abolished on homes worth up to £500,000. The cut will last until 31 March 2021.
The average stamp duty bill will fall by £4,500, he says.The average stamp duty bill will fall by £4,500, he says.
And he says this will take effect immediately.And he says this will take effect immediately.
Conservative MPs are welcoming the chancellor’s Job Retention Bonus to encourage workers to bring furloughed employees back .Conservative MPs are welcoming the chancellor’s Job Retention Bonus to encourage workers to bring furloughed employees back .
Here’s Milton Keynes North MP Ben Everitt:Here’s Milton Keynes North MP Ben Everitt:
And Robert Courts of Witney and West Oxfordshire:And Robert Courts of Witney and West Oxfordshire:
But by not extending the furlough scheme, workers still face a worrying cliff-edge this autumn -- will a £1,000 bonus make the difference to a struggling firm?But by not extending the furlough scheme, workers still face a worrying cliff-edge this autumn -- will a £1,000 bonus make the difference to a struggling firm?
Sunak confirms he will spend £2bn on a new green homes grant.Sunak confirms he will spend £2bn on a new green homes grant.
On top of this, there will be £1bn of funding to improve the energy efficiency of public buildings, he says.On top of this, there will be £1bn of funding to improve the energy efficiency of public buildings, he says.
These measures should make 650,000 homes more energy efficient, saving families £300 a year, he says.These measures should make 650,000 homes more energy efficient, saving families £300 a year, he says.