UK Chancellor Rishi Sunak Delivers Summer Statement

Published

9th July 2020

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

He announced a VAT cut on hospitality as part of a £30bn plan to prevent mass unemployment as the economy is hit by coronavirus.

The government will also pay firms a £1,000 bonus for every staff member kept on for three months when the furlough scheme ends in October.

And Mr Sunak announced a scheme to give 50% off to people dining out in August.

The chancellor warned 
"hardship lies ahead", but vowed no-one will be left "without hope", in a statement to MPs.

But he said he would "never accept unemployment as an inevitable outcome" of the pandemic.

Details of how the package will be paid for - through borrowing and possible tax rises - are likely to be unveiled in the chancellor's Autumn Budget.


The "job retention bonus" could cost as much as £9.4bn if every furloughed worker is brought back.

Explaining how it will work, the chancellor said: "If you're an employer and you bring back someone who was furloughed - and continuously employ them through to January - we'll pay you a £1,000 bonus per employee."

He also told MPs he will cut VAT on food, accommodation and attractions rom 20% to 5% from next Wednesday.

Mr Sunak also announced an "Eat Out to Help Out" discount, which he said would help protect 1.8 million jobs, at cost of £0.5bn.

Meals eaten at any participating business, Monday to Wednesday, will be 50% off in August, up to a maximum discount of £10 per head for everyone, including children.

Businesses will need to register, and can do so through a website, which will open next Monday.


The chancellor also announced a £2.1bn "kickstart scheme" to create more jobs for young people.

The fund will subsidise six-month work placements for people on Universal Credit aged between 16 and 24, who are at risk of long-term unemployment.

Below, you can find a copy of the SCC statement that has been published in response to the Chancellor’s statement as well as a summary document of where these new measures are applicable to Scotland.


As a quick note, the Scottish Government will receive an additional £800million through the Barnett formula.

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