UK coronavirus live: Rishi Sunak unveils stamp duty cut, furlough bonus and August discount for eating out

Chancellor delivers summer statement in the Commons on UK economic recovery from pandemicThe chancellor’s key points at a glanceFull report: Sunak unveils stamp duty holiday and hospitality VAT cutBoris Johnson refuses to apologise to care workers at PMQsPM’s local hospital closes to emergency admissions after Covid-19 outbreakGlobal coronavirus updates – live 2.46pm BST The stamp duty holiday announced today has caused quite a stir in the property sector, with some industry figures warning it will distort the market in England and Northern Ireland.David Westgate, CEO at consultancy Andrews Property Group, says it’s a ‘high risk’ move that could drive prices sharply higher in the short-term.‘’Making the much anticipated Stamp Duty cut temporary is a gamble if the economy hasn’t recovered by the Spring.“It is possible that we will have a boom scenario between now and April next year when a disproportionate number of people are buying at higher prices followed by softer prices when the scheme ends and asking prices are adjusted.I would expect more homes to come on to the market as the stamp duty cut will improve the saleability of a home.However, this measure is unlikely to solve the inherent issues in the housing market. The cut will most help buyers in high value areas, which are mainly in London, the south east and south west of England. The average first home in northern regions is below £150,000 and around 90% of first-time buyers in England won’t see any benefit from this change.“The time period of the stamp duty relief announced by the Chancellor, from now until 31 March 2021, is relatively short. It gives little opportunity for house builders to use the reduction to inform strategic decisions on construction plans beyond the next nine months.The current fall in house prices may also encourage people to sit tight until the market recovers and there is huge uncertainty around job security. This policy will likely need extending in order to have real economic impact.” 2.40pm BST The Treasury is still working on a separate plan to help the long-term unemployed, according to a line in the Plan for Jobs document (pdf). This is from Robert Colvile from the Centre for Policy Studies thinktank.Worth flagging this in the small print of ‘A Plan for Jobs’ (as spotted by my eagle-eyed colleagues). pic.twitter.com/N57AVjapbh Continue reading…
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