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Job Retention Plan - The Facts & What Business Thinks
We have a Job Retention Scheme Factsheet and responses from business groups to the Chancellor's latest plans to keep the economy upright in the...
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A Plan For Jobs
8 July saw the Chancellor of the Exchequer set out a ‘Plan for Jobs’ that will spur the UK’s recovery from the Coronavirus outbreak. Here The Installer details exactly what Rishi Sunak has in mind.
Delivering his Summer Economic Update in Parliament, the Chancellor announced a package of measures to support jobs in every part of the country, give businesses the confidence to retain and hire and provide people with the tools they need to get new or even better jobs.
Phase two
The plan for jobs is the second part of a three-phase plan to secure the UK’s economic recovery from coronavirus.
The first stage was a £160 billion support package, which included £49 billion of extra funding for the country’s public services including the NHS, paying the wages of nearly 12 million people and supporting over a million businesses through grants, loans and rates cuts.
Eat Out to Help Out
As the UK enters the second phase in its recovery, the Chancellor’s plan is designed to support jobs by focussing on skills and young people, to create jobs with investment in shovel-ready projects and greening our infrastructure and protect jobs through a VAT cut for the hospitality sector and a innovative Eat Out to Help Out discount scheme for diners.
Rishi Sunak told the House of Commons: "Throughout this crisis I have never been the prisoner of ideology. For me, this has never just been a question of economics - but of values.
"Our plan has a clear goal - to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start."
Phase three
The Chancellor said that following this second phase focusing on jobs, there will be a third phase focusing on rebuilding, with a Budget and Spending Review in the autumn. However, a number of these plans have already been revealed and you can read about them on TheInstall.pro on the following links.
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Supporting jobs
As part of the plan to support jobs, a Job Retention Bonus will be introduced to help firms keep furloughed workers. UK Employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
Subsidised jobs
A new £2 billion Kickstart Scheme will also be launched with the intention of creating hundreds of thousands of new, fully subsidised jobs for young people across the country. Those aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible. Funding will be available for each six-month job placement to cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.
A total of £1.6 billion will be invested in scaling up employment support schemes, training and apprenticeships to help people looking for a job.
Young people, who are amongst the worst hit by the crisis, will benefit from this in the following ways:
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Businesses will be given £2,000 for each new apprentice they hire under the age of 25. This is in addition to the existing £1,000 payment the government already provides for new 16-18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan.
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A £111 million investment to triple the scale of traineeships in 2020-21 ensuring more young people have access to high quality training.
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£17 million of funding to triple the number of sector-based work academy placements in 2020-21.
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Nearly £900 million to double the number of work coaches to 27,000.
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Over a quarter of a million more young people to benefit from an extra £32 million investment in the National Careers Service.
Creating jobs
The plan will also create jobs by bringing forward work on £8.8 billion of new infrastructure, decarbonisation and maintenance projects. This includes a £3 billion green investment package that could help support around 140,000 green jobs and upgrade buildings and reduce emissions.
Green Homes Grant
As part of this package homeowners and landlords in England will be able to apply for vouchers from a £2 billion Green Homes Grant scheme this year to pay for green improvements such as double glazing or insulation that could save some households hundreds of pounds a year on their energy bills while creating and retaining jobs for tradespeople.
There will also be a £1 billion programme will make public buildings, including schools and hospitals, greener, helping the country meet its ambitions of achieving Net Zero by 2050, whilst investing in our future prosperity.
In addition, £5.8 billion will be spent on shovel-ready construction projects to get Britain building. This includes:
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£1.5 billion for hospital maintenance and upgrades.
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£100 million for the local roads network.
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Over £1 billion to start to rebuild schools in the worst condition in England, plus £760 million this year for key maintenance work on schools and FE colleges.
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£1 billion for local projects to boost local economic recovery in the places that need it most.
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£142 million for court maintenance to repair around 100 courts across England
Protecting jobs
The plan will also aim to protect jobs. 80% of hospitality firms stopped trading in April and 1.4 million hospitality workers have been furloughed – the highest proportions of any sector. Ensuring there is enough demand as businesses reopen is key to helping these businesses recover and have the confidence to protect jobs and rehire. Therefore, to encourage people to safely return to eating out at restaurants the Government’s new Eat Out to Help Out discount scheme will provide a 50% reduction for sit-down meals in cafes, restaurants and pubs across the UK from Monday to Wednesday every week throughout August 2020.
VAT
The rate of VAT applied on most tourism and hospitality-related activities will also be cut from 20% to 5%. This will save households around £160 per year on average and, together with the Eat Out to Help Out Scheme, will support over 2.4 million staff at over 150,000 businesses, helping them recover and reopen after the Covid-19 lockdown. This will give these businesses the confidence to maintain their staff, as more people get through the door and business activity kick-starts again.
Stamp duty
Confidence to move, to buy, to sell, to renovate and to improve homes will be encourage by the introduction of a temporary increase to the Nil Rate Band of Residential SDLT (Stamp Duty) from £125,000 to £500,000 until 31 March 2021. In England and Northern Ireland nearly 9 out of 10 people getting on or moving up the property ladder will pay no Stamp Duty at all. This is expected to drive growth and support jobs across the housebuilding and property sectors.
Picture: Chancellor of the Exchequer Rishi Sunak has laid out his plans to retain and create jobs - many of which will be in the house building sector.
Article written by Cathryn Ellis
09th July 2020