Summer Economic Statement - What it means for PGA Members

The PGA has reviewed the measures to assist Members in interpreting and taking maximum use of the funding and cuts.

VAT

A reduction in VAT to 5% for the hospitality and tourism sector – Golf clubs, facilities and resorts will be able to apply the new rate from 15 July 2020 to 12 January 2021. The reduction applies to accommodation, restaurants and attractions.
The rate reduction is intended to be passed on to customers to stimulate demand and will encourage golf club members and visitors to make use of the food and beverage offering available.

Eat out to help out scheme

For further stimulation of demand golf club members and visitors can, from August 3 to August 31, from Monday – Wednesday, take advantage of 50% off meals (up to £10 per person) at qualifying establishments
To qualify to allow customers and members claim this discount, golf facilities can register for this scheme on the link below if the business sells food for consumption on the premises, provides its own dining area (the business must also have been registered as a food business before 7 July)
Register your establishment for the Eat Out to Help Out Scheme

Job Retention Bonus

Employers will be able to claim £1,000 for every employee brought back from furlough
For every previously furloughed employee that is brought back and continues in employment until at least the end of January 2021. Employees must earn above the £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.

Introduction of the Kickstart Scheme

Essentially this is government funding to subsidise jobs for unemployed young people (aged 16-24).
It will fund the first 6 months of work placements and will cover 100% of the National Minimum Wage for 25 hours a week; employers can top this up if they want to. The scheme is available for high quality work placements, given to people aged 16-24 who are on Universal Credit and deemed to be at risk of long-term unemployment. It opens in August and will run to December 2021 (but could be extended).

Apprenticeships

Capped at 10 jobs per business, there will be available £1,000 per trainee, more info is available here https://www.gov.uk/government/collections/traineeships--2
For the next 6 months up to £2,000 per new apprentice and £1,500 if the apprentice is over 25 (from 1st August 2020 to 31st January 2021). This is in addition to the existing £1,000 payment the government already provides for certain apprentices.

Supporting greener technology

Support in the form of vouchers for homeowners up to £5,000 / £10,000 (with the higher amount for ‘poorer’ households) to help upgrade houses re: energy efficiency (loft and wall insulation are mentioned)
Also, support to help make public sector buildings greener
This new scheme provides at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient (up to certain caps).

Stamp Duty Land Tax

A reduction in SDLT until 31 March 2021. It will now only be charged on properties costing £500k or more.
There are however different rules for people buying second homes.

If you want to read the detail about the announcements made on 8 July, you can read more here:

Other Updates

although other recent scheme updates are below:

You can now delete claims if you realise you’ve made an error. You can do this through the online service, but it must be done within 72 hours of creating the claim

Calculating flexible furlough claims can be problematic. The important point is that claims must be calculated by looking at the HOURS worked by employees (not days). You can read more here:https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-using-the-coronavirus-job-retention-scheme