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Economic update 2020: expectations

8th July 2020

Chancellor Rishi Sunak will deliver an economic update to the House of Commons this afternoon.

The Treasury has played down this being a ‘July Budget' or a ‘mini-Budget', insisting no economic forecasts or tax decisions will be issued.

Those are all on hold until what looks like a whopper of an Autumn Budget and subsequent spending review.

Whatever Sunak's speech is called today, it's a package of economic measures designed to offset the impact of coronavirus.

Speculation suggests a six-month stamp duty holiday in England and Northern Ireland could be announced to stimulate the property market.

The ‘holiday' may see Sunak raise the property tax threshold at which stamp duty kicks in, from £125,000 to £500,000.

Other rumours claim Sunak will temporarily cut the standard rate of VAT from 20% to tempt consumers to spend cash they saved in lockdown.

The Financial Times reports the Chancellor could offer companies £1,000 lump sums for taking trainees on work experience.

This would be an attempt to avoid mass youth unemployment by tripling the amount of traineeships on offer to young people.

We will update you with any new measures.