Chancellor Rishi Sunak is set to unveil a raft of new measures to offset the impact of the coronavirus pandemic on the UK economy.
At his economic update on Wednesday, which has been billed as “a summer statement” and “a mini-budget”, the frontbencher is expected to announce a stamp duty holiday and insulation vouchers among other perks.
Incentives to trainees, a cut to VAT and hospitality vouchers are also among the rumours surfacing ahead of the Chancellor’s Wednesday statement.
When is the mini-budget?
Rishi Sunak will unveil government spending plans to the House of Commons on Wednesday.
As yet no specific time has been provided, though it is expected that the statement will take place in the early afternoon.
Where can I watch the statement?
You can watch online through BBC iPlayer here, while Sky News has a live YouTube stream here.
What to expect
The Chancellor has shown decisive action during the coronavirus pandemic, with his job retention scheme saving millions of jobs, but economic pundits have been told to expect a more low-key affair on Wednesday.
That being said, there are some rumours floating around, suggesting that Mr Sunak could be set to unveil headline-grabbing measures.
A stamp duty ‘holiday’ has been widely reported, with the Chancellor expected to raise the threshold that people start paying stamp duty tax from £125,000 to £500,000.
The markets have already reacted positively to the reports with housing firm Taylor Wimpey among those soaring in value on Monday.
Incentives to companies who employ trainees are also expected, with the Financial Times indicating that the government would pay £1,000 to organisations who hire a trainee for work experience.
Think tank Resolution Foundation has called on the government to supply adults and children with vouchers worth £500 and £250 respectively to spend on the areas of the economy worst hit by lockdown measures. Such measures have already proven successful in China.
Many have called on the government to introduce a cut in VAT, which currently stands at 20%, with the end goal being an increase in customer spending.
The furlough scheme introduced in March is set to be wound down in October, though some have suggested that a more targeted version of the scheme, aimed at those in the worst sectors, could be rolled out beyond the current scheme’s deadline.