On Wednesday 8 July, the Chancellor delivered an economic update announcing the second phase of the Government’s response to the coronavirus (COVID-19) pandemic. He also announced that a full Budget will follow in the Autumn. The Chancellor’s statement included a ‘green recovery’ and a ‘plan for jobs’. A summary of the tax announcements is set out below.
Employers across the UK are likely to be heartened by the Chancellor's £30bn plan for jobs, a considerable economic stimulus, aimed to protect existing jobs, and develop the skills and opportunities to get people back to work - and quickly. The scale of investment reflects the scale of the challenge and the need for speed to create a difference.
The Chancellor has recognised the unique role that leisure and hospitality industries play in Britain’s economy and the temporary reduction in VAT for hospitality and tourism businesses, and the August “Eat Out to Help Out” discount will be a welcome relief for a sector that was hardest hit during the lockdown and which employs almost 2.5 million people.
Both the Chancellor’s stamp duty holiday and energy efficiency stimulus package could be the start of the scale and ambition required to transform our buildings, skills and our broader economy.