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Rishi Sunak - Summer Statement Cabinet
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Sunak protects jobs with furlough bonus and VAT cut

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A jobs retention bonus to bring back furloughed workers, a cut to VAT for the hospitality sector, and an increase in the SDLT threshold were the main headlines from the Chancellor’s Summer Statement aimed at protecting jobs. 

8th Jul 2020
Editor AccountingWEB
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Rishi Sunak announced today the second phase of the government’s response to the coronavirus with a widespread plan for jobs.

The Chancellor outlined his vision in the Summer Statement where he encouraged firms to keep on furloughed workers, cut VAT to 5% for the hospitality and tourism sector and increased the SDLT threshold to get the property market moving.

“We haven’t done everything we have so far just to step back now and say, ‘job done’. In truth, the job has only just begun,” said Sunak.

Sunak’s plans come as the country faces the deepest global recession since records began and an economy that has contracted by 25% - which he pointed out was the same amount it grew in the previous 18 years.

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Replies (2)

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By Justin Bryant
09th Jul 2020 16:38

The SDLT thing has some bizarre consequences e.g. FTB relief has effectively been abolished for the next 9 months, so FTBs are now arguably worse off, all else being equal. [Edit] Indeed it is actually abolished temporarily per the link below:

https://publications.parliament.uk/pa/cm5801/cmagenda/PCTA%20resolutions...

Also, an MDR claim can now leave you worse off due to the 1% minimum MDR rate!

But that's all nothing when you read this "too good to be true" comment: https://www.accountingweb.co.uk/any-answers/new-temporary-stamp-duty-rates

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By AndrewV12
05th Aug 2020 13:18

'Sunak batted off calls to extend the furlough scheme past October by introducing the Jobs Retention Bonus, which incentivises employers to bring back furloughed staff through to January in exchange for a £1,000 bonus per employee.'

Now this could be ringing a dinner bell to fraudsters, or those who fancy a quick earn.

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