The Chancellor of the Exchequer, Rishi Sunak, has announced an extensive range of measures to keep people in work as the economy recovers from coronavirus.
Employers will be encouraged to bring back furloughed staff through a new scheme which will see a one-off payment of £1000 per employee if employees are kept in work continuously until January 2021.
VAT will be cut from 20% to 5% to help the tourism and hospitality sector for 6 months. A new Eat Out to Help Out scheme will also give 50% off meals out to customers Monday to Wednesday in August.
Hundreds of thousands of young people aged 16-24 will get subsidised high quality jobs. Businesses will receive a 100% grant to take on a young person for 6 months for 25 hours a week.
There will also be significant stamp duty cut for those buying houses in England and Northern Ireland. Stamp Duty is the responsibility of the Scottish Government in Scotland and the SNP ministers are now being urged to pass on this tax cut to help boost the construction industry in Scotland.
John Lamont MP said: “The Chancellor said at the start of this crisis that he will do everything he can to protect jobs. This plan will protect as many jobs as possible in the Borders.
“The new Kickstart Scheme will help young people across Great Britain gain vital training and work experience while ensuring they get a wage. Unfortunately, young people are usually the hardest hit during an economic crisis. This should go some way to avoiding that.
“The VAT cut will be especially welcome here in the Borders when large parts of the economy relies on tourism with day trippers and tourists visiting our restaurants and local attractions.”
Rachael Hamilton MSP said: “This is a historic intervention from the Conservative Government. The tourism and hospitality industry have been given a lifeline to protect jobs and livelihoods and save businesses.
“I am delighted that young people too can have confidence that more opportunities for work will be stimulated by the £2bn Kickstart scheme for 16-24 yr olds.
“The positive investment in retaining jobs and boosting economic growth from the UK is in sharp contrast to the grievance politics of the SNP. The Chancellor has risen to the occasion and has set Britain on course for recovery”.
Chancellor of the Exchequer, Rt Hon Rishi Sunak MP said: “Today I’ve set out our plan to protect, create and support jobs across Scotland – to level up opportunity, safely reopen our economy and strengthen the Union.
“With a massive funding boost for Jobcentre Plus, doubling the number of work coaches, more people will now benefit from personalised and tailored job support. We’re investing £800m through the Barnett formula, giving Scotland the funds to create green news jobs. And we’re protecting the thousands of existing jobs in the hospitality sector with a cut to VAT and the Eat Out to Help Out scheme.”
