Every adult to be given £500 voucher

[Jakubclaret]

The point being made was that £500 in someone’s pocket to be spent in a town or city centre is likely to generate more than £500 for businesses if people are also spending money not covered by the voucher in other businesses while they are shopping. Or with a £500 voucher maybe that £750 TV that someone had their eye on and couldn’t afford suddenly comes into reach and the business is getting £750 rather than £500.

Why do individuals need to benefit? Something for nothing doesn't teach people if you want something get up from idle backside go out to work & earn it & spend it, the retailer can easily discount the television if there's a cash injection or a overhead reduction. Giving people vouchers & money to spunk isn't the way forward nevermind on TVs, a better idea would be is for the government to spend £30 billion with asda & tescos ect, & give people fixed non redeemable non transferable vouchers on food & essentials, going hungry will damage people's health not watching television won't .

[Long Time Lurker]

Well the £500 retail voucher didn't materialise

If you are selling a house that is valued over 125K and less than 500K you just got a hand out. Which won't help the poor in any way. It might push up house prices and benefit those with second homes or property portfolios ( like MP's )

If you want to make energy saving improvements the government will pay £2 for every £1, which will help landlords and property developers - but not people who can't afford to put food on the table let alone pay 33% of a big house refit cost.

Employers bringing back furloughed staff will get £1000, which won't help small business with few employes but it will pay a lot to big businees with large workforces that probably don't need the money. How will that work if a second wave hits ?

Not only are the COVIDIOTS being encourage to get out and mingle they are now being given a financial incentive to do it, with the Governments " Eat Out To Help Out " scheme. Poor people can't afford to eat out. Giving 500m to food banks would have been a greater help.

Vat for the hospitality sector cut by 15%. Again encouraging people to mingle and helping hospitality and tourism, while completely ignoring the plight of other retailers. Do the coffee shops, pubs and hotels really need the money more than others?

2bn on a kickstart scheme that will give youngsters a six month job where they will be helped to find work at a different company than the one being given the cash incentive and their free labour.

£100m in cash gifts to take on new apprenticeships. Positions that pay less than minimum wage, benefits / 37.5 in some case, and usually end when the apprentice period ends. Take the apprenticeship or lose your access to benefits and starve, knowing the firm will most likely cut you lose because paying you a full wage is less attractive than getting a new apprentice. That means more cheap labour for businesses to exploit, but it will generate nice employment figures.

Extend apprenticeships to the over 25's. The more cheap labour the better.

Announce the 5.6bn infrastructure package again ( although the stamp duty and home improvement aspects aren't new either ). Boris must have his 15 mile 1bn cycle route in London.

And the big kicker, when it comes time to balance the books for all this spending what will the Governmen do ?

Tax the rich to pay for it or tax the poor and make their lives even more difficult ?

An awful economic stimulus plan from an elitist Government that couldn't care less about the lives of everyday people.

[Spijed]

Strange that they've not given any incentives to the "red wall voters" that they won at the last election.

Can anyone explain why?

[Rowls]

The point being made was that £500 in someone’s pocket to be spent in a town or city centre is likely to generate more than £500 for businesses if people are also spending money not covered by the voucher in other businesses while they are shopping. Or with a £500 voucher maybe that £750 TV that someone had their eye on and couldn’t afford suddenly comes into reach and the business is getting £750 rather than £500.

All seems fine. Yup.

Actually don't see any problems with this whatsoever.

Why not stop at £500 when we can boost the economy even further.

I vote that the government print vouchers of £10,000 for each and every citizen, once a week.

That would boost the economy by a factor of 20 compared to the measly, miserly £500 idea. Gotta think big here, folks.

[KateR]

ahhh another hate the Gov thread, oohhhh plus of course anyone who has a little money, I do love the number of top flight economists on here who can quickly assess and state things like, an awful economic stimulus plan and not a single incentive to the "red wall voters".

[taio]

Strange that they've not given any incentives to the "red wall voters" that they won at the last election.

Can anyone explain why?

Perhaps you can try to explain why the package of economic measures won't benefit or incentivise red wall voters at all.

[nil_desperandum]

If you are selling a house that is valued over 125K and less than 500K you just got a hand out. Which won't help the poor in any way. It might push up house prices and benefit those with second homes or property portfolios ( like MP's )

It'll massively benefit those in the South east though since most properties cost a lot more than £125000. (Av. is £380.000)
I should imagine that many will save between 5 and 10 thousand in Stamp Duty. As someone else posted though, it won't help those in red-wall constituencies very much. (Av house price in NW is £180.000)

[taio]

It'll massively benefit those in the South east though since most properties cost a lot more than £125000. (Av. is £380.000)
I should imagine that many will save between 5 and 10 thousand in Stamp Duty. As someone else posted though, it won't help those in red-wall constituencies very much. (Av house price in NW is £180.000)

Those voters can take comfort from the fact that the gross price of property is vastly lower than the SE.

[KateR]

It'll massively benefit those in the South east though since most properties cost a lot more than £125000. (Av. is £380.000)
I should imagine that many will save between 5 and 10 thousand in Stamp Duty. As someone else posted though, it won't help those in red-wall constituencies very much. (Av house price in NW is £180.000)

you're picking on one issue only as you feel it suits your agenda.

If you look at the number of businesses failing you will have a huge number of people who could be in that bracket that simply wont, while out of work, be able to do what you say. Yet the Gov. are borrowing at record levels and spreading, they will want to see the whole economy grow, this could also stimulate external investment which brings more money in to the economy from outside, which is going to be sorely needed. It will help the property market and those working in it who will be hit that work across the numerous jobs in that market and will help somewhat to protect what is the largest investment most people have.

[Damo]

Not sure giving 500m to food banks is going to stimulate the economy but its a nice idea

[claret2018]

Stamp duty is paid by buyers btw

[barba]

Stamp duty cut is probably designed to help those on and those trying to get on the ladder

Some elderly owners are reluctant to downsize because they dont want to pay the tax. This stops the natural progression of those moving up the ladder and those trying to own their first property.

Although first time buyers certainly wont in most cases benefit financially they may benefit from more properties being available.

Whether it will work I know not

[claret2018]

interesting that the VAT reduction doesn't apply to alcohol so not a huge benefit to pubs, especially those that don't serve food.

[KateR]

the stamp duty cut helps everyone buying above 125,000, it will help to stimulate the property sector, it will encourage those maybe planning for next year to do it before March 31st, it's part of an overall interim stimulus package and I expect more to come in the future to cover other areas.

[claret2018]

the stamp duty cut helps everyone buying above 125,000, it will help to stimulate the property sector, it will encourage those maybe planning for next year to do it before March 31st, it's part of an overall interim stimulus package and I expect more to come in the future to cover other areas.

It's got me thinking about moving before I was planning to, so it's working!

[Paul Waine]

the stamp duty cut helps everyone buying above 125,000, it will help to stimulate the property sector, it will encourage those maybe planning for next year to do it before March 31st, it's part of an overall interim stimulus package and I expect more to come in the future to cover other areas.

Young couple, both teachers, one is son of a family friend, buying their first house in S.W London, cost £600k (nothing fancy). If I've understood these changes correctly, they will benefit from stamp duty cut. Of course, they also "benefit" from very low mortgage rates, if they've been able to scrape together their deposit (or, maybe bank of Mum and Dad).

I put "benefit" in inverted commas, because house prices wouldn't be so high if interest rates weren't so low...

[Paul Waine]

interesting that the VAT reduction doesn't apply to alcohol so not a huge benefit to pubs, especially those that don't serve food.

Do you think I'll see a saving on the alcohol free beer I drink?

[KateR]

if it's ginger beer then yes you will

[nil_desperandum]

you're picking on one issue only as you feel it suits your agenda.

If you look at the number of businesses failing you will have a huge number of people who could be in that bracket that simply wont, while out of work, be able to do what you say. Yet the Gov. are borrowing at record levels and spreading, they will want to see the whole economy grow, this could also stimulate external investment which brings more money in to the economy from outside, which is going to be sorely needed. It will help the property market and those working in it who will be hit that work across the numerous jobs in that market and will help somewhat to protect what is the largest investment most people have.

I didn't have an agenda.
I posted - factually- in reply to someone who said that the stamp duty change wouldn't benefit "poorer" people.

("It won't help the poor in any way")

My point was that if you're in the South East it will help just about everyone buying a house, because the average price is £200,000 higher than around here, so currently stamp duty is payable on even the lowest priced properties.
What was my agenda?

[barba]

Young couple, both teachers, one is son of a family friend, buying their first house in S.W London, cost £600k (nothing fancy). If I've understood these changes correctly, they will benefit from stamp duty cut. Of course, they also "benefit" from very low mortgage rates, if they've been able to scrape together their deposit (or, maybe bank of Mum and Dad).

I put "benefit" in inverted commas, because house prices wouldn't be so high if interest rates weren't so low...

The threshold is upto £500k. Not sure whether full duty will be paid on their full £600k, just the difference or whether their will be any additional first time buyer relief.

That said they would probably need £60k to £90k as a deposit.

Id personally be waiting as we could easily see a 10% correction.

[KateR]

Young couple, both teachers, one is son of a family friend, buying their first house in S.W London, cost £600k (nothing fancy). If I've understood these changes correctly, they will benefit from stamp duty cut. Of course, they also "benefit" from very low mortgage rates, if they've been able to scrape together their deposit (or, maybe bank of Mum and Dad).

I put "benefit" in inverted commas, because house prices wouldn't be so high if interest rates weren't so low...

According to what I have read house prices have been dropping for 4 straight months and no upturn expected in the rest of the year, this property stimulus might just help that change and encourage those "thinking" about a move or an investment, whether internally or externally. What it wont help is the low priced flats (under 125,000) in places such as Newcastle, that are bought for renting to students.

[CrosspoolClarets]

House prices need to go down by at least a third but it won’t happen while interest rates are so low. An entire generations being frozen out (unless middle class parents can subsidise their kids to start off), and the ones that do buy face a negative equity time bomb when the house price crash comes.

Today of course is all about short term recovery hence the desperation to keep high street cafes, pubs and restaurants open. The £1,000 end of furlough reward is surely aimed at them, as is the VAT cut and the eating out voucher. We lose those businesses, our lives become far worse overnight. When demand returns, supply will take a decade to build back up to what it was before.

[KateR]

I didn't have an agenda.
I posted - factually- in reply to someone who said that the stamp duty change wouldn't benefit "poorer" people.
My point was that if you're in the South East it will help just about everyone buying a house, because the average price is £200,000 higher than around here, so currently stamp duty is payable on even the lowest priced properties.
What was my agenda?

9 out 10 house purchases are "expected" to benefit, the threshold is £125,000 so it will help the vast majority and not just the SE.

It's a stimulus package, that means help helps across the property market not just buyers, the aim is to encourage people to spend money now.

[mikeS]

Wow! £10 off pies Hotdogs and Twixes at the Turf - but only in August ....DOh!!!

[clarethomer]

I will just keep saving

[Claretmatt4]

Seems to be a good mix of initiatives to help a lot of people. Not a fan of this government but some people just desperate to pick holes in anything. It's an unprecedented level of support

[nil_desperandum]

Seems to be a good mix of initiatives to help a lot of people. Not a fan of this government but some people just desperate to pick holes in anything. It's an unprecedented level of support

Maybe, but unfortunately there was still nothing really to address the issue that whilst many people are benefiting financially from the lockdown there are still 3 million, (mainly freelancers) who are getting nothing.

[dougcollins]

Cutting VAT will not encourage people to spend who have nothing to spare.

The voucher option sounded a bit daft initially but was probably the better option.

[Paul Waine]

Cutting VAT will not encourage people to spend who have nothing to spare.

The voucher option sounded a bit daft initially but was probably the better option.

Cutting VAT allows the hotel and other hospitality sector to reduce their prices. If they do this it gives people the opportunity to take holidays in UK - and including foreign tourists coming to UK - and so, both starts to rescue the hotel/hospitality sector and gives those who may not have had enough to take a holiday and pay 20% VAT, have enough for their holiday at 5% VAT.

Let's say w/end in hotel was going to cost £120, the new cost should be £105. In other terms, 12.5% cost saving on all qualifying expenditure...

[martin_p]

All seems fine. Yup.

Actually don't see any problems with this whatsoever.

Why not stop at £500 when we can boost the economy even further.

I vote that the government print vouchers of £10,000 for each and every citizen, once a week.

That would boost the economy by a factor of 20 compared to the measly, miserly £500 idea. Gotta think big here, folks.

Presumably you’ve harsh words of condemnation for the chancellor’s £10 eating out in August voucher scheme.

[clarethomer]

Cutting VAT allows the hotel and other hospitality sector to reduce their prices. If they do this it gives people the opportunity to take holidays in UK - and including foreign tourists coming to UK - and so, both starts to rescue the hotel/hospitality sector and gives those who may not have had enough to take a holiday and pay 20% VAT, have enough for their holiday at 5% VAT.

Let's say w/end in hotel was going to cost £120, the new cost should be £105. In other terms, 12.5% cost saving on all qualifying expenditure...

Will be interesting to see if what has been announced actually happens in the way you predict. I hope it does stimulate the industry but until I know what is happening with work etc - I am not spending more than absolutely necessary.

Work has been fine up to now and financially planning to ensure that if I get made redundant I have enough money in the bank to give me a year to get back into work. Certainly won't be doing a weekend on the excitement of a 15% discount - which you can often get through booking sites anyway (if not even more)

[Paul Waine]

Will be interesting to see if what has been announced actually happens in the way you predict. I hope it does stimulate the industry but until I know what is happening with work etc - I am not spending more than absolutely necessary.

Work has been fine up to now and financially planning to ensure that if I get made redundant I have enough money in the bank to give me a year to get back into work. Certainly won't be doing a weekend on the excitement of a 15% discount - which you can often get through booking sites anyway (if not even more)

I support your caution, clarethomer. I retired in March. Plans were to travel Europe and long-haul. I've not done anything these past 4 months and I don't plan to get on a plane again any time soon. However, I'm ready to "do my bit" to help get the UK economy going again. I'd already booked 2 weeks in Lake District end of August. I'll not complain if the VAT cut reduces my spend a little and I'll be thinking of what else I can do to re-cycle my savings.

[Rowls]

Presumably you’ve harsh words of condemnation for the chancellor’s £10 eating out in August voucher scheme.

Actually martin, I say that the Chancellor's scheme doesn't not go not nearly far enough.

I've been thinking about it and have literally put my mind to the task. Obviously, if you make a "cash injection" into the economy it's unequivocally a good thing. Likewise if you "boost" the economy or "invest" money into the economy.

So I was thinking of a way of making the Chancellor's scheme and I think I've found a way to make it TEN TIMES BETTER:

I would offer everybody a £100 voucher.

My scheme is clearly TEN TIMES BETTER. Why hasn't the Chancellor already thought of this?????????

[martin_p]

Actually martin, I say that the Chancellor's scheme doesn't not go not nearly far enough.

I've been thinking about it and have literally put my mind to the task. Obviously, if you make a "cash injection" into the economy it's unequivocally a good thing. Likewise if you "boost" the economy or "invest" money into the economy.

So I was thinking of a way of making the Chancellor's scheme and I think I've found a way to make it TEN TIMES BETTER:

I would offer everybody a £100 voucher.

My scheme is clearly TEN TIMES BETTER. Why hasn't the Chancellor already thought of this?????????

I’m not really sure what point your bizarre attempt at humour is trying to make given it’s an argument nobody has tried to make. Maybe it’s your way of saying you were wrong.

[No Ney Never]

How long before there is a report in the news about how researchers have discovered that many businesses have failed to pass on the VAT savings in their prices, instead they've kept prices the same and pocketed the difference to make up for the lost income during the lockdown?

I welcome the eating out discount and VAT reduction, it's something that I will benefit from. A forty quid meal for the wife and I only costing twenty, think we'll be eating out a bit more in august providing all precautions are in place.

[Billy Balfour]

Now we've had time to digest this.

Good points.

Temporary job creation schemes for under-25s and companies being paid £2,000 for each 'apprentice' they take on.

Green investment to worth £5,000 to retrofit homes with insulation etc and money to make public buildings greener.

Doubtful on cost v benefit basis

I see the Meal Deal as nothing more than costly short term gimmick.

There's no obligation for the hospitality and tourism industry to pass on the 15% VAT reduction to the customer.

The stamp duty holiday doesn't do much for the worst hit regions like the north west and north east.

£1,000 bonus for every furloughed employee brought back to work won't save many jobs. In fact it penalises companies who invested a lot of money to keep their staff safe while working, when many in the similar industries simply furloughed their staff.


I would keep the job creation schemes and green stuff. I would ditch the rest and reduced VAT to zero right across the board and make it compulsory to pass on the benefit. Pocketing would be treated as fraud.

[claret2018]

"I would keep the job creation schemes and green stuff. I would ditch the rest and reduced VAT to zero right across the board and make it compulsory to pass on the benefit. Pocketing would be treated as fraud."

That would be impossible to do - you can't stop businesses changing their prices.

[UnderSeige]

There is / will be plenty of organisations that are making redundancies right now using COVID as a convenient, legal opportunity to treat staff like ****.

The voucher scheme would be a feel good factor for all (well most. Obviously some exceptions on this thread) and allow people to invest the money in a place they choose. And kickstart businesses worse affected.

Some people won’t have had a penny spare for a long time. Helping individuals help businesses seems a far better way to go about it to me.

I was a bit sceptical until you mentioned 'feel good factor'. I think it would certainly provide that.

[UnderSeige]

The government could give everyone the card but not to be activated for 6 months (or some other time in the future). All cards marked for activation.

If anyone is caught breaking any Coronavirus regulations in the 6 months their card should be confiscated and/or taken off the 'activation list. This would be in addition to any fines imposed.

Buying or selling cards should be made illegal.

[UnderSeige]

One way of increasing tax revenue and stimulating the economy is to cut tax rates for the most wealthy.

https://www.investopedia.com/terms/l/laffercurve.asp

[UnderSeige]

How they do it on the other side of the pond. No billionaire left behind.

Income inequality in America has worsened in recent decades. Many on the left, buttressed by a not-insignificant number of those on the right, have argued for an increasingly progressive income tax code to tackle this problem.

But they’re focusing on the wrong solution—instead, the target ought to be the Federal Reserve... The Fed’s ceaseless quantitative easing programs and obstinate commitment to unnaturally low interest rates in the years following the 2008 financial crisis have had the unintended effects of both incentivizing reckless deficit-driven spending from Congress and exacerbating income and wealth inequality in the private sector. https://fortune.com/2019/05/02/fed-inte ... nequality/

https://eu.usatoday.com/story/money/202 ... 032970002/

[UnderSeige]

Increase incentives for students to learn useful skills through higher education. Following this, offer incentives to companies to recruit and train graduates with useful degrees.

Full tuition fees and no grants for Mickey Mouse degrees such as Culinary Arts, Fashion design, art history, liberal art, David Beckham studies , Media studies, Surfing Studies, Equestrian Psychology, Theatre Practice (puppetry), Parapsychology, 'Feel The Force: How to Train in the Jedi Way', Ufology (name for the study of Dr Who), Beyoncé studies, The Beatles, Popular Music and Society, Yacht Operations, Viticulture and Oenology, Viking Studies, Pop Culture, Bowling Industry Management and Technology, The Simpsons and Philosophy, Clownology etc.

Reduced tuition fees (or no tuition fees) for scientists, computer science, engineering, geology, medicine, etc.
Also selective grants for some subjects for which there are skill shortages in the economy.

[Billy Balfour]

"I would keep the job creation schemes and green stuff. I would ditch the rest and reduced VAT to zero right across the board and make it compulsory to pass on the benefit. Pocketing would be treated as fraud."

That would be impossible to do - you can't stop businesses changing their prices.

The govt certainly wouldn't be telling them what to charge for their services, goods or whatever. They would be dropping the VAT - a totally different issue.