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UK Government Summer Statement: A Plan for Jobs

Posted: 8th July 2020


The UK Chancellor Rishi Sunak has announced a further package of UK Government support to help businesses, individuals and public services through the Covid-19 crisis.

Measures in reserved areas that will apply in Scotland include:

Support for Jobs:

  • Job retention scheme bonus – employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021, to provide additional support to firms to keep employees as demand returns. Further details will be available at the end of the
  • Kickstart Scheme a £2bn fund to create hundreds of thousands of new, high quality, fully subsidised jobs for young people aged 16-24, claiming Universal Credit and at risk of long term
  • Expansion of work search support – including a new online one-to-one Job Finding Support offer for the recently unemployed, additional funding for the Flexible Support Fund (including boosting DWP’s Rapid Response Service), doubling the number of work coaches and additional intensive support for those who have been unemployed for more than three months; as well as an expansion of support offered to young job seekers.
  • Construction Talent Retention Scheme – an online job-matching platform, minimising redundancies in the construction sector by supporting the retention and redeployment of workers across the

Support for tourism and hospitality:

  • Temporary VAT reduction – the UK government will cut the rate of VAT applied across the UK to hospitality, accommodation and attractions from 20% to 5%, for a period of six months. The reduced rate will apply from 15 July 2020 and guidance will be published.
  • Eat Out to Help Out a 50% discount on eat in meals and non-alcoholic drinks at participating restaurants, cafes or other food services establishments across the UK. This scheme will be valid Monday-Wednesday during August with the discount capped at £10/head/meal. Participating establishments will be fully reimbursed and registration guidance will be published.

Green Investment:

  • Social Housing Decarbonisation Demonstrator – a £50m demonstrator project to start the decarbonisation of social housing over 20/21, focussing on innovative approaches to retrofitting social housing at
  • Decarbonising Public Sector Buildings – investment to upgrade public sector buildings, making them fit to help meet net zero with energy efficiency and low carbon heat measures. This measure is in a devolved area of policy but will apply to the UKG estate across the
  • Direct Air Capture – up to £100m to support DAC technologies, as announced by the PM last
  • UKRI world class labs – A £300m investment in 20/21 to boost equipment and infrastructure across universities and institutes across the UK

Accompanying documents have been published here.

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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