The UK Chancellor Rishi Sunak has made a statement to the House of Commons in Westminster today outlining the UK Government’s Phase 2 response of its economic recovery plan from COVID–19.
Below is a summary of the reserved issues applicable in Scotland. ICC can confirm that the Scottish Government will receive an additional £800million through the Barnett formula.
Commenting on the Chancellor of the Exchequer Rishi Sunak’s package of measures to support economic recovery announced today (8th July), Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:
“This announcement marks the next step forward in ensuring we achieve an economic recovery that protects jobs. This is essential if we are going to be able to prevent an unemployment crisis as well as meet ambitious low carbon targets.’’
On the Barnett Formula:
“The £800 million additional funding received through the Barnett formula is a welcome boost to support Scottish business recovery.
“It is now up to the Scottish Government to work with business and target support where it is most needed – protecting jobs and ensuring young people can access training and support.”
On the Kickstart Scheme & Jobs Retention Bonus:
“The Kickstart Scheme is a practical step in the recovery that will protect existing jobs while creating new ones.
“In addition, the Jobs Retention Bonus scheme will act as a bridge to support the thousands of jobs that have been maintained through the furlough scheme.
“Employers will need this incentive to ensure they can deliver sustainable employment.
“The Chamber network stands ready to work with government on the detail of these schemes to ensure they are successfully delivered on the ground.”
On support for the housing market & Stamp Duty:
“This is a great opportunity for the Scottish Government to align the Land and Buildings Transaction Tax (LBTT) with the Stamp Duty holiday announced today which would stimulate the Scottish housing market and play an important role in protecting and creating jobs in the construction industry and the supply chain.
“The Scottish Government must also take the baton and enable plans to decarbonise Scotland’s housing stock to ensure we meet net-zero ambitions.”
On VAT reductions:
“SCC called for targeted VAT reductions for the hospitality and tourism industry and the Chancellor has listened.
“These reductions are welcome as hard-pressed businesses in the tourism and hospitality sectors are in desperate need of such lifeline support.
“However, the Chancellor missed an opportunity today to reduce VAT for the retail sector.
“This move would have encouraged more shoppers to return to our high streets and breathe life back into our local economies. The Chancellor should still consider this reduction in his Autumn Budget.’’
On Eat out to Help Out:
“This will be a shot in the arm for the hospitality sector next month and will provide a much-needed confidence boost for consumers.”
Plan for Jobs Document can be seen here.