Summer Economic Update 2020

Summer Economic Update 2020

We have pleasure in updating our summary of the policies announced in the Chancellor’s Summer Economic Update this week.

 

Although Rishi Sunak did not introduce anything specifically aimed at helping the motor industry, some of the general measures will undoubtedly be of benefit.  We would like to draw your attention to two in particular:

 

Job Retention Bonus – subject to certain conditions, you will receive a payment of £1,000 for each employee that you have brought back from furlough and who is still employed by you at the end of January 2021.  Although this payment is unlikely to influence any decision you make about retaining current staffing levels, as dealers furloughed the majority of their teams, this will provide a welcome cash injection at a time when some delayed liabilities are due to start crystallising.

 

Payments for new apprenticeships and traineeships – the motor industry has traditionally invested heavily in apprenticeship opportunities.  Employers will now be eligible for a payment of between £1,000 and £2,000 for each apprentice/trainee they take on between August 2020 and January 2021.  Not only will this benefit you with your ”normal” intake of apprentices, it also provides the opportunity to consider whether a change in staff profile might include more trainees and if apprenticeships could be offered across a greater number of departments.

You can find the full report here among other useful documents on our Resource page. 

If you would like to discuss how these announcements could apply to your business, please get in contact with us at michelle.malone@ase-global.com

Or visit our LinkedIn page for more info:https://www.linkedin.com/company/ase-plc/