Chancellor in £30bn bid to get economy going
UK Chancellor Rishi Sunak has announced a £30 billion package of support aimed at boosting the economy as lockdown eases.
He announced £1000 for companies for every employee they bring back off furlough and who is still employed by the end of January 2021.
There will also be a VAT cut on food, accommodation and attractions from 20% to 5% from July 15 until January 12, costing £4bn.
He revealed a scheme for firms to be given £2000 for each new apprentice under 25 they hire and a new bonus of £1500 for apprentices over that age.
A half-price voucher worth up to £10 to eat out will be introduced for everyone to help the hospitality trade recover.
Sunak said: “Our message to business is clear: if you stand by your workers, we will stand by you.”
He added: “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.”
The UK Government said the package means £800 million for the Scottish Government.
He also announced a Stamp Duty holiday for homes up to half a million pounds in England, which has been met with calls for the Scottish Government to do the same through the equivalent Land and Buildings Transactions Tax.
Alister Jack, the UK Government’s Scottish Secretary, said: “The Stamp Duty cut gives a helping hand to the housing market and building trades in England. urge the devolved administration to use their powers to do the same in Scotland.”
Scottish Government Finance Secretary Kate Forbes said the
Ipackage was “a huge opportunity missed”.
She said: “There is no new capital spend, no extension to the furlough scheme for hard-hit sectors and no further support for households in financial difficulty.
“A half-price meal out does not help those struggling to put food on the table.”
Glasgow City Council leader Susan Aitken wanted more help for those reliant on the benefits system. She said: “A few welcome commitments from the Chancellor today but still falls far short of what’s needed.
“No mention of desperately needed improvements to benefits.”
Sturgeon said the list will be reviewed on July 20.
The list of countries where no quarantine is needed includes Australia, Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Finland, France and Germany. Greece, Hong Kong, Hungary, Iceland, Italy, Jamaica, Japan and the Netherlands are also included, as are New Zealand, Norway, Poland and Turkey. The UK Government excluded Portugal, Russia, the US and Sweden.
Changes for people who shielding were also announced. From Friday, those who are shielding will no longer require to physically distance themselves from those they live with – a rule are
Glasgow East SNP MP David Linden, said: “The Chancellor wants people to ‘eat out to help out’ but the reality for many is that they can’t afford to eat at all.”
Scottish Labour leader Richard Leonard said: “The furlough scheme must be continued until a quality Jobs Guarantee Scheme is in place, and it must have the flexibility to continue in certain sectors where necessary.”
Peter Kelly of Poverty Alliance, said: “At a time when more people than ever before are relying on emergency help from food banks, it is action to put cash in people’s pockets that is required, not the offer of a £10 discount on eating out.”
Health Secretary Jeane Freeman said had been “extremely difficult and painful” for many to follow.
People in single-parent households or who live on their own will also be able to form an extended household group in the same way as the rest of the population can, including being able to visit someone in their home or stay overnight without having to physically distance.
Freeman said those who are in this category will also be able to book holiday accommodation or go to a second home, provided these do not have shared facilities with other households.
Sturgeon said a total of 2490 patients have died after testing positive for coronavirus, up by one from 2489 on Tuesday, and 18,309 people have tested positive for the virus, up by seven from 18,302.