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You can find the current article at its original source at https://www.theguardian.com/world/live/2020/jul/08/uk-coronavirus-live-sunak-to-set-out-jobs-plan-and-stamp-duty-holiday
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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 |
| Rishi Sunak, the chancellor, has unveiled what is effectively an emergency coronavirus budget, pledging new measures worth up to £30bn that are intended to help protect jobs when the current furlough scheme runs out and the economic crash starts to send unemployment soaring. By any normal standards the sums being spent are staggering, but the crisis has upended economic thinking and Sunak was criticised by the opposition parties for not showing enough ambition. (See 1.40pm and 4.34pm.) Many of the measures had been been written up or speculated about in advance, including a green homes grant (£2bn), a stamp duty cut (£4bn), a VAT cut for the hospitality sector (£4bn) and a kickstart scheme subsidising jobs for the young (£2bn). But there were some surprises. The most talked about may be one that was, at £500m, comparatively cheap - an “Eat Out to Help Out” discount scheme for people eating out in August, from Monday to Wednesdays. But the most significant, and expensive, was the £9bn job retention bonus. In his speech Sunak said the furlough system had to end in October. He explained: | |
| The job retention bonus will pay firms £1,000 if they retain furloughed staff, provided they are kept on until January. Arguably this might just delay the point at which people are made redundant. But, to coin a phrase, you could see this as flattening the curve. | |
| Here is our main story on the summer statement. | |
| Here is a summary of the key points. | |
| Here is a column on it from Martin Kettle, in which he argues that Sunak is “now the most important person in the Conservative government, Boris Johnson included”. | |
| And here is an extract from Martin’s article. | |
| That’s all from us for tonight. | |
| Thanks for the comments. | |
| Samuel Tombs of economics consultancy Pantheon Macroeconomics says Rishi Sunak has given employers an incentive to bring more workers back part time, rather than fewer full time: | Samuel Tombs of economics consultancy Pantheon Macroeconomics says Rishi Sunak has given employers an incentive to bring more workers back part time, rather than fewer full time: |
| ITV’s Robert Peston thinks the August meal deal might just lead to more people eating out earlier in the week, instead of at the weekend. | ITV’s Robert Peston thinks the August meal deal might just lead to more people eating out earlier in the week, instead of at the weekend. |
| The UK car industry is unhappy that Rishi Sunak announced no targeted support for their sector today. | The UK car industry is unhappy that Rishi Sunak announced no targeted support for their sector today. |
| Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, says other countries are providing more help: | Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, says other countries are providing more help: |
| There had been speculation that the government might launch a scrappage scheme to encourage people to trade in old cars for new models. Sales in 2020 are down over 48%, to their lowest level since 1971. | There had been speculation that the government might launch a scrappage scheme to encourage people to trade in old cars for new models. Sales in 2020 are down over 48%, to their lowest level since 1971. |
| Here is the start of a Twitter thread from Faiza Shaheen, head of the Class (Centre for Labour and Social Studies) thinktank, on the summer statement. | Here is the start of a Twitter thread from Faiza Shaheen, head of the Class (Centre for Labour and Social Studies) thinktank, on the summer statement. |
| And this is her conclusion. | And this is her conclusion. |
| Here’s our Money editor, Hilary Osborne, on the temporary cancellation of stamp duty on property sales up to £500,000: | Here’s our Money editor, Hilary Osborne, on the temporary cancellation of stamp duty on property sales up to £500,000: |
| More here: | More here: |
| The Institute for Fiscal Studies has released its first full statement on the Rishi Sunak announcement. Here is the overview from its director, Paul Johnson. | The Institute for Fiscal Studies has released its first full statement on the Rishi Sunak announcement. Here is the overview from its director, Paul Johnson. |
| Here are some other points the IFS is making about the announcement. | Here are some other points the IFS is making about the announcement. |
| The government has spent an extra £30bn on health services since March, of which £15bn has gone on PPE, according to the Treasury documents. | The government has spent an extra £30bn on health services since March, of which £15bn has gone on PPE, according to the Treasury documents. |
| The government will be spending almost £190bn on coronavirus rescue measures on the basis of what has been announced so far, almost 9% of what the UK economy produced in 2019-20. | The government will be spending almost £190bn on coronavirus rescue measures on the basis of what has been announced so far, almost 9% of what the UK economy produced in 2019-20. |
| The kickstart job subsidy scheme for the young is very similar to Labour’s future jobs fund in 2009, which had “lasting positive impacts on the employment of those employed under the scheme”. | The kickstart job subsidy scheme for the young is very similar to Labour’s future jobs fund in 2009, which had “lasting positive impacts on the employment of those employed under the scheme”. |
| The IFS says that if takeaways had been included in the August food discount scheme, that would be “more effective in increasing output without compromising social distancing”. | The IFS says that if takeaways had been included in the August food discount scheme, that would be “more effective in increasing output without compromising social distancing”. |
| The IFS says there is a risk that the energy efficiency vouchers will “lead to inflated prices of energy efficiency equipment, particularly if the scope of eligible spending is narrow”. | The IFS says there is a risk that the energy efficiency vouchers will “lead to inflated prices of energy efficiency equipment, particularly if the scope of eligible spending is narrow”. |
| Sacha Lord, nighttime economy adviser for Greater Manchester, is also concerned that pubs that mainly sell beer are not benefiting from the VAT cut: | Sacha Lord, nighttime economy adviser for Greater Manchester, is also concerned that pubs that mainly sell beer are not benefiting from the VAT cut: |
| Lord has welcomed the “Eat out to help out” scheme, but cautions that restaurants and pubs need to maintain social distancing. | Lord has welcomed the “Eat out to help out” scheme, but cautions that restaurants and pubs need to maintain social distancing. |
| [Correction: Greene King CEO Nick Mackenzie didn’t actually mention “traditional pubs” as I mistakenly wrote earlier (now fixed). Apologies. GW] | [Correction: Greene King CEO Nick Mackenzie didn’t actually mention “traditional pubs” as I mistakenly wrote earlier (now fixed). Apologies. GW] |
| The Ministry of Justice has announced that cleaners in its central London offices will now receive full pay if they are self-isolating or off sick, our colleague Harriet Grant reports here. The announcement follows Guardian reports in June that the MoJ failed to investigate a potential Covid-19 cluster among its cleaners. | The Ministry of Justice has announced that cleaners in its central London offices will now receive full pay if they are self-isolating or off sick, our colleague Harriet Grant reports here. The announcement follows Guardian reports in June that the MoJ failed to investigate a potential Covid-19 cluster among its cleaners. |
| Here is some more reaction to the summer statement from three of the smaller parties at Westminster. | Here is some more reaction to the summer statement from three of the smaller parties at Westminster. |
| From the SNP’s Treasury spokeswoman, Alison Thewliss: | From the SNP’s Treasury spokeswoman, Alison Thewliss: |
| From the acting Lib Dem leader, Sir Ed Davey: | From the acting Lib Dem leader, Sir Ed Davey: |
| From Plaid Cymru’s Ben Lake: | From Plaid Cymru’s Ben Lake: |