At-a-glance Summer statement

Eat out for half the price

During August people will be given vouchers covering as much as 50% of their food bills.

As many as 130,000 eateries, bars that sell food, and sit-down restaurants will be eligible to sign up for the scheme, which will cover up to £10 per head for people dining out on Mondays, Tuesdays or Wednesdays.

More than 1.4 million workers in the hospitality sector have been furloughed since March and the government hopes its Eat Out To Help Out scheme will help get customers out of their homes and into the country’s restaurants.

VAT slashed

The chancellor acknowledged the tourism and hospitality sectors have been hammered hardest by the shutdown.

As a result, he has decided VAT will be temporarily cut from 20% to 5% for hotels, takeaways, restaurants and zoos, from Wednesday of next week.

Mr Sunak claims this will be a “£4 billion catalyst” for the sector, which employs more than 2.4 million people – around 8% of the country’s entire workforce.

Job retention

The furlough scheme will be brought to an end in October but employers will be encouraged to retain all of their employees who have been furloughed through a new funding programme.

Mr Sunak said every employer bringing someone back to work until at least January will get a £1,000 bonus per employee.

The worker has to be paid £520 a month on average, from November to January.

The chancellor said if every furloughed employee is brought back to work, it will cost the government £9bn.

Young people into work

A new £2 billion “kickstart” programme to subsidise “hundreds of thousands” of jobs for young people was also unveiled.

Those aged 16-24 who receive Universal Credit and are at risk of long-term unemployment will be eligible.

The government said funding available for each six-month job placement will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.

Companies will also be given up to £2,000 for every new apprentice they employ under the age of 25, on top of the current £1,000 payment currently provided for businesses with apprentices aged 16 to 18.

Elsewhere

Stamp duty will be removed for all houses worth up to £500,000 in the UK. It is not yet clear if the Scottish Government will match this, as it has control over its own legislation.

Homeowners and landlords in England will be able to apply for vouchers from a £2bn Green Homes Grant scheme this year to pay for green improvements such as loft, wall and floor insulation.

A £1bn construction programme for public buildings has also been announced, including court houses and council buildings, but this has been allocated for English properties only.