The Chancellor Rishi Sunak took steps in his Summer Statement to help protect furloughed staff from losing their jobs. pledging around £9 billion which will be used to help give businesses an incentive to retain their workers.
Business Incentive Scheme Unveiled
Businesses will be paid £1,000 per employee to retain furloughed staff rather than lay them off, as there was a very real likelihood of thousands and thousands of workers losing their jobs once the government withdrew their support through the furlough scheme. Hopefully this will be a good enough incentive for many businesses to keep hold of their staff. Companies will also be given the sum of £2,000 for each apprentice they take on under the age of 25. They have also offered to pay the wages of any new young employee for a total of 6 months.
Hardship Lies Ahead But There Is Hope
Announcing his Plan for Jobs Rishi Sunak is quoted in a Guardian article as saying:
“People need to know that although hardship lies ahead, no one will be left without hope.”
“Leaving the furlough scheme open for ever gives people false hope that it will always be possible to return to the jobs they had before,” he said. “And the longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities.
“It is in no one’s long-term interests for the scheme to continue for ever, least of all those trapped in a job that can only exist because of government subsidy.”
In the Summer Statement the Chancellor also announced that there would be a cut in VAT from 20% to 5% for hospitality, tourism and accommodation services, including pubs, restaurants, cafes, hotels, zoos and cinemas, until next January. This cut will be for food, accommodation and attractions but will not apply to alcohol sold.
Help With Running Your Business
At WHR Accountants we have been very busy helping out numerous businesses from all sectors of the economy with their taxes, applying for grants and funding, PAYE, business planning and general accounting etc. If you have a business that needs any help with any of the above please get in touch with our team on 028 3752 2909.