Summer Economic Statement overview

Following announcements by Chancellor, Rishi Sunak

Chancellor, Rishi Sunak, has introduced a series of measures focused in some key areas that have been hard hit due to COVID19.

Referred to as ‘Phase 2’ of the Government’s response, it focusses on ‘bridging the gap’ as we move forward from impact of COVID19 and look to transition to a ‘new normal’. Rishi Sunak announced a number of measures of support including:

  • Job Retention Bonus;
  • Kickstart Jobs Scheme;
  • Trainee and Apprentice Bonus Schemes;
  • Green Homes Grants;
  • Stamp Duty Cut;
  • VAT Reduction for the hospitality and tourism sector; and
  • ‘Eat Out to Help Out’ Scheme.
Phase 2

Focussing on ‘bridging the gap’ as we move forward from impact of COVID19 and look to transition to a ‘new normal’.

Phase 3

This will focus on rebuilding, announcements are due to come in the Autumn Budget.

With the ‘Summer Economic Statement’ and measures, the Chancellor is looking to:

  • support, create and protect jobs (thus helping businesses and individuals);
  • boost the property market;
  • encourage energy efficiency in homes; and
  • support the ailing hospitality and tourism industry.

These new measures are broadly welcomed. Anything that can help protect, create and support jobs, plus specific measures to help some sectors and to encourage energy efficiency are clearly positive. However, there is no doubt that these measures will not go far enough for some.

Only time will tell whether these measures will have the desired impact and whether they will inject activity in the areas they are targeting.

summer economic statement overview image

The measures do pose some questions:

  • Will the hospitality sector pass on the VAT reduction to the end consumer?
  • Will consumers feel safe enough to visit hospitality and leisure attractions to benefit from the 50% discount offered in the ‘Eat Out to Help Out’ scheme?
  • Is it too late for those staff that have already been made redundant or for those businesses that cannot continue to trade due to the devastating impact already?

The impact of these measures will affect many SMEs. If you have furloughed staff, whilst the promise of a £1,000 bonus may not be enough for you to keep on all your furloughed staff, where the case is marginal, this bonus may be enough to tip the balance in favour of keeping the jobs.

How these changes affect you will vary from business to business and person to person.  We want to help you get through these tough times and benefit from the support that is available to you.

That is why we are offering a free initial business review to SMEs to help you navigate through these coming months. The review comes in the form of a 30-minute remote consultation.

Need our help?

How these changes affect you and your business will vary. We are here to help you get through these tough times and benefit from the support that is available to you. Please contact us for more information.

For more information

For more information on how the Summer Economic Statement affects you, please contact us on:

01483 416232