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| UK coronavirus live: Rishi Sunak unveils stamp duty cut, furlough bonus and August discount for eating out | UK coronavirus live: Rishi Sunak unveils stamp duty cut, furlough bonus and August discount for eating out |
| (32 minutes later) | |
| Chancellor delivers 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 stamp duty holiday announced today has caused quite a stir in the property sector, with some industry figures warning it will distort the market in England and Northern Ireland. | |
| David Westgate, CEO at consultancy Andrews Property Group, says it’s a ‘high risk’ move that could drive prices sharply higher in the short-term. | |
| Yorkshire Building Society’s strategic economist Nitesh Patel argues that stamp duty should be reformed. Sunak’s temporarily cut will mainly help the South of England, he warns: | |
| Chris Denning, partner at MHA MacIntyre Hudson, reckons the holiday is too short to provide long-term help: | |
| The Treasury is still working on a separate plan to help the long-term unemployed, according to a line in the Plan for Jobs document (pdf). This is from Robert Colvile from the Centre for Policy Studies thinktank. | |
| Business groups like the chancellor’s announcement. | |
| Here is an extract from the response from Dame Carolyn Fairbairn, the CBI director general. | |
| And this is from Adam Marshall, director general of the British Chambers of Commerce. | |
| Chris Beauchamp, chief market analyst at City firm IG, predicts that Rishi Sunak will need to produce more stimulus measures in the autumn budget. Today’s announcement won’t be enough to protect the economy... | Chris Beauchamp, chief market analyst at City firm IG, predicts that Rishi Sunak will need to produce more stimulus measures in the autumn budget. Today’s announcement won’t be enough to protect the economy... |
| Labour’s call for the furlough scheme to be extended beyond October has been backed by an unexpected ally - City firm JP Morgan. | Labour’s call for the furlough scheme to be extended beyond October has been backed by an unexpected ally - City firm JP Morgan. |
| Mike Bell, global market strategist at JP Morgan Asset Management, argues that the chancellor is “giving with one hand, while taking away with the other”. | Mike Bell, global market strategist at JP Morgan Asset Management, argues that the chancellor is “giving with one hand, while taking away with the other”. |
| He fears the new £1,000 jobs retention bonus, temporary VAT cut, stamp duty holiday and jobcentre support won’t make up for the removal of the support for furloughed staff, writing: | He fears the new £1,000 jobs retention bonus, temporary VAT cut, stamp duty holiday and jobcentre support won’t make up for the removal of the support for furloughed staff, writing: |
| Angela Merkel has said the European Union should prepare for talks with the UK to end in no deal. | |
| Speaking in the European parliament in Brussels, the German chancellor said progress in talks had been “slim, to put it diplomatically”. She explained: | Speaking in the European parliament in Brussels, the German chancellor said progress in talks had been “slim, to put it diplomatically”. She explained: |
| Germany took over the rotating presidency of the EU council on 1 July and is likely to play an increasingly important role behind the scenes as talks enter a crucial stage in the autumn. | Germany took over the rotating presidency of the EU council on 1 July and is likely to play an increasingly important role behind the scenes as talks enter a crucial stage in the autumn. |
| Merkel did not refer to Boris Johnson’s own preferred July deadline, widely seen as unrealistic by the EU side. | Merkel did not refer to Boris Johnson’s own preferred July deadline, widely seen as unrealistic by the EU side. |
| Damian McBride, a Labour adviser who used to work as a civil servant at HM Revenue and Customs and then the Treasury, thinks the VAT cut for hospitality and tourism will turn out to be less generous than implied. | Damian McBride, a Labour adviser who used to work as a civil servant at HM Revenue and Customs and then the Treasury, thinks the VAT cut for hospitality and tourism will turn out to be less generous than implied. |
| Rishi Sunak is trying to save Britain from a mass unemployment crisis with a ‘turbocharged’ summer statement, writes our economics editor Larry Elliott: | Rishi Sunak is trying to save Britain from a mass unemployment crisis with a ‘turbocharged’ summer statement, writes our economics editor Larry Elliott: |
| More here: | More here: |
| Unions have expressed disappointment with the summer spending announcement. | Unions have expressed disappointment with the summer spending announcement. |
| Frances O’Grady, the TUC general secretary, said there should have been targeted support for manufacturing sectors most at risk. She said: | Frances O’Grady, the TUC general secretary, said there should have been targeted support for manufacturing sectors most at risk. She said: |
| And Dave Prentis, the Unison general secretary, said there should have been more for the public services. He said: | And Dave Prentis, the Unison general secretary, said there should have been more for the public services. He said: |
| Here is more on the summer statement from Paul Johnson, director of the Institute for Fiscal Studies. | Here is more on the summer statement from Paul Johnson, director of the Institute for Fiscal Studies. |
| The Labour Party has got its rebuttal line: today’s plan is a ‘meal deal’ not a Rooseveltian New Deal: | The Labour Party has got its rebuttal line: today’s plan is a ‘meal deal’ not a Rooseveltian New Deal: |
| They’ve got a point - FDR’s massive stimulus programme amounted to 40% of US economic output. Today’s meal discount is rather more modest, estimated to cost £500m (or 0.02% of GDP). The temporary VAT cut (which will also make meals out cheaper) is costing another £4.1bn. | They’ve got a point - FDR’s massive stimulus programme amounted to 40% of US economic output. Today’s meal discount is rather more modest, estimated to cost £500m (or 0.02% of GDP). The temporary VAT cut (which will also make meals out cheaper) is costing another £4.1bn. |
| But as Robert Peston pointed out earlier, the total cost of the government’s measures since the pandemic struck is huge, and heading over £200bn. | But as Robert Peston pointed out earlier, the total cost of the government’s measures since the pandemic struck is huge, and heading over £200bn. |
| The Treasury’s plan for jobs document, giving all the details of the measures announced today, is now on its website here. | 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. | 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. | 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. | 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: | 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. | 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 seven 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. | Sturgeon made the travel announcements as she confirmed there had been one more death in the last 24 hours, and an additional seven 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. | 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: | 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 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 furlough scheme should have been extended for some sectors. She said: |
| She said the government needed a better public health response. She said: | She said the government needed a better public health response. She said: |
| She criticised the test and trace scheme. 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”. | 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. | 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: | 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. | 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. | 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. | 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. | Here is some snap reaction to the announcement from economic commentators. |
| From Paul Johnson, director of the IFS | From Paul Johnson, director of the IFS |
| From ITV’s Robert Peston | From ITV’s Robert Peston |
| From Sky’s Ed Conway | 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 $1.254 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. |