Summer Economic Update – Baachu Detailed

Baskar Sundaram
Baskar Sundaram

Security & Home Affairs Sector

  • Court modernisation – The Government will invest £102 million to modernise the court estate in England and Wales. This will include £55 million for essential court maintenance, £37 million for technology to fast-track the digitalisation of the courts, and £10 million for local regeneration projects outside London and the South East which will support employment and economic growth.
  • Prison and probation estate funding – The Government will invest £143 million to improve the prison and probation estate in England and Wales. This will include £20 million to accelerate the digitalisation of prisons, £60 million for 1,000 temporary prison units to expand the capacity of the estate, and £63 million in additional maintenance.

 Education sector:

  • Further Education (FE) estate funding – Building on the £1.5 billion commitment for FE capital funding made at Budget 2020, the Government will bring forward £200 million to ‪2020-21‬ to support colleges to carry out urgent and essential maintenance projects. This will be the first step in the Government’s commitment to bring the facilities of colleges everywhere in England up to a good level.
  • School estate funding – The Government will provide additional funding of £560 million for schools in England to improve the condition of their buildings and estates in ‪2020-21‬. This is on top of the £1.4 billion already invested in school maintenance this year (see more here).
  • School rebuilding programme – The Government has announced over £1 billion to fund the first 50 projects of a new, ten-year school rebuilding programme in England. These projects will be confirmed in the autumn, and further detail on future waves will be confirmed at the Comprehensive Spending Review. Construction on the first sites will begin in September 2021.

Energy & Environment sector

  • Public Sector Decarbonisation Scheme – The Clean Growth Strategy set out the Government’s ambition to halve greenhouse gas emissions from the public sector by 2032. To help achieve this and support economic recovery, the Government will invest £1 billion over the next year in a Public Sector Decarbonisation Scheme that will offer grants to public sector bodies, including schools and hospitals, to fund both energy efficiency and low carbon heat upgrades.
  • Green Jobs Challenge Fund – The Government will invest up to £40 million in a Green Jobs Challenge Fund for environmental charities and public authorities to create and protect 5,000 jobs in England. The jobs will involve improving the natural environment, including planting trees, restoring habitats, clearing waterways, and creating green space for people and wildlife.
  • Direct Air Capture – The Government will provide £100 million new funding for researching and developing Direct Air Capture, a new clean technology that captures CO2 from the air.
  • Automotive Transformation Fund – Building on the announcement last year of up to £1 billion of additional funding to develop and embed the next generation of cutting-edge automotive technologies, the Government is making £10 million of funding available immediately for the first wave of innovative R&D projects to scale up manufacturing of the latest technology in batteries, motors, electronics and fuel cells. The Government is also calling upon the industry to put forward investment proposals for the UK’s first ‘gigafactory’ and supporting supply chains to mass manufacture cutting-edge batteries for the next generation of electric vehicles, as well as for other strategic electric vehicle technologies.
  • Courts sustainability – The Government will invest £40 million to improve the environmental sustainability of the courts and tribunals estate in England and Wales, investing in initiatives to reduce energy and water usage.
  • Green Homes Grant – The Government will introduce a £2 billion Green Homes Grant, providing at least £2 for every £1 homeowner and landlords spend to make their homes more energy-efficient, up to £5,000 per household. For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household. In total this could support over 100,000 green jobs and help strengthen a supply chain that will be vital for meeting our target of net-zero greenhouse gas emissions by 2050. The scheme aims to upgrade over 600,000 homes across England, saving households hundreds of pounds per year on their energy bills.

 Catering & hospitality sector

  • Temporary Energy & Environment cut for food and non-alcoholic drinks – From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.
  • Temporary VAT cut for accommodation and attractions – From 15 July 2020 to 12 January 2021, to support businesses and jobs, the reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK. Again, further guidance on the scope of this relief will be published by HMRC in the coming days.
  • Eat Out to Help Out – In order to support around 130,000 businesses and to help protect the jobs of their 1.8 million employees, the Government will introduce the Eat Out to Help Out scheme to encourage people to return to eating out. This will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50% discount.

Human Resources and the Apprenticeships, Skills and Training:

  • Job Retention Bonus – The Government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021. Further detail about the scheme will be announced by the end of July.
  • Payments for employers who hire new apprentices – The Government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. These payments will be in addition to the existing £1,000 payment the Government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.
  • High quality traineeships for young people – The Government will provide an additional £111 million this year for traineeships in England, to fund high quality work placements and training for 16-24 year olds. This funding is enough to triple participation in traineeships. For the first time ever, the Government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee. The Government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below, to ensure that more young people have access to high quality training.
  • Kickstart Scheme – The Government will introduce a new Kickstart Scheme in Great Britain, a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
  • New funding for National Careers Service – The Government will provide an additional £32 million funding over the next 2 years for the National Careers Service so that 269,000 more people in England can receive personalised advice on training and work.
  • High-value courses for school and college leavers – The Government will provide £101 million for the ‪2020-21‬ academic year to give all 18-19-year-olds in England the opportunity to study targeted high-value Level 2 and 3 courses when there are no employment opportunities available to them.
  • New funding for sector-based work academies – The Government will provide an additional £17 million this year to triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people, helping them gain the skills needed for the jobs available in their local area.

 Welfare:

  • Job finding support service – £40 million to fund private sector capacity to introduce a job finding support service in Great Britain in the autumn. This online, one-to-one service will help those who have been unemployed for less than three months increase their chances of finding employment.
  • Expansion of the Work and Health Programme – up to £95 million this year to introduce additional voluntary support in the autumn for those on benefits that have been unemployed for more than 3 months. This will have no impact on existing provision for those with illnesses or disabilities in England and Wales.
  • New large-scale employment support offer – support for those who are out of work for a longer period with a new, large-scale employment support offer. Further details will be announced shortly.
  • Enhanced work search support – £895 million to enhance work search support by doubling the number of work coaches in Jobcentre Plus before the end of the financial year across Great Britain.
  • New funding for National Careers Service – an additional £32 million funding over the next 2 years for the National Careers Service so that 269,000 more people in England can receive personalised advice on training and work.
  • Flexible Support Fund – increase funding by £150 million in Great Britain, including to increase the capacity of the Rapid Response Service. It will also provide local support to claimants by removing barriers to work such as travel expenses for attending interviews.
  • Expanded Youth Offer – expand and increase the intensive support offered by DWP to young jobseekers, to include all those aged 18-24 in the Intensive Work Search group in Universal Credit.

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