Govt Fiscal Package: More Help For Heritage Buildings is Needed

Some reaction to Chancellor Rishi Sunak’s statement in the House of Commons yesterday, from Angus Roy, charity director at Ecclesiastical:

“While it is encouraging that the government is providing a much-needed boost to the economy, it’s disappointing that the chancellor hasn’t used this fiscal statement as an opportunity to give specific support to the charity sector. 

A sector that will be key in helping to rebuild society and the challenges it has faced during this Covid-19 pandemic.  While some charities can benefit from the Government’s new job retention scheme, we want to see more direct support, such as a cut in insurance premium tax (IPT) or increasing the rate of Gift Aid, and we urge him to consider this in future.”

Faith Kitchen, heritage director at Ecclesiastical, also commented:

“Ecclesiastical is the UK’s leading insurer of Grade I listed buildings and with over 130 years’ experience we are passionate about protecting the country’s historic and iconic buildings and structures. It is encouraging to see that the government is providing a much-needed boost to the economy. Many heritage organisations will greatly benefit from the Government’s temporary cut to VAT on food, accommodation and attractions from 20% to 5%. However, it’s disappointing that the chancellor hasn’t used this fiscal statement as an opportunity to give direct support to the heritage sector.

We need to do more to support the custodians of Britain’s heritage properties, such as reducing VAT on repairs and approved alterations to listed buildings to help organisations and owners of listed properties protect such an important part of the nation’s heritage.”

Here’s some general comment on the Summer Statement from PKF Accountants;

The Chancellor made his much-anticipated announcement on the latest financial stimulus measures to support the UK’s economic recovery following the Coronavirus (COVID-19) pandemic.  In his opening remarks, he noted that the interventions he had made since March were to be viewed as ‘Phase 1’  – with the aim of protecting the economy and the financial health of individuals and businesses – and that today we had started ‘Phase 2’, with the attention now focused towards protecting jobs.

All of today’s announcements were measured against this one goal – and, indeed, the supporting documentation released by the Treasury was simply titled the government’s ‘Plan for jobs’.  Whether referencing increased infrastructure spending, the Job Retention Bonus (payable to employers who bring furloughed staff back to work and keep them employed until at least 31 January), the creation of new employment-based training and apprenticeship opportunities, or the increase in the nil band SDLT threshold to £500,000 (to keep the housing market moving and support ancillary service providers in that sector), the aim is to protect and create new employment opportunities.

The hospitality and leisure sector received direct support – hardly surprising given that these businesses are amongst the hardest hit by the pandemic.  Reduced VAT rates of 5% will take effect next Wednesday (15 July) in respect of certain supplies made by restaurants, hotels and tourist attractions, amongst others, and will last for six months.  And in a novel move, the (perhaps unfortunately titled) ‘Eat Out to Help Out’ scheme will provide a 50% discount (up to £10 per head) for diners on Mondays to Wednesdays throughout August, with the government picking up that half of the bill and making a cash payment to the restaurant within five days.  It is perhaps notable, however, that these benefits to the hospitality sector do not extend to alcoholic drinks.

As always with significant announcements, we await the finer detail, which will arrive in the coming months.  In particular, the announcement (and supporting documents) are vague on which furloughed employees will qualify for the Job Retention Bonus – is it all employees who have ever been furloughed or individuals that were (or will be) on furlough on a specified date?  The government anticipates that this measure alone will cost £10 billion, implying that a significant number of jobs will benefit from the relief.