Covid-19 recovery: Help to heal the region's economy?
The Chancellor Rishi Sunak has set out a series of measures worth up to £30billion which he hopes will help the country's economy to recover from coronavirus.
Mr Sunak's plan includes a £2 billion package designed to create hundreds of thousands of jobs for young people, an increase in the stamp duty threshold from £125,000 to £500,000 and a scheme designed to save the jobs of furloughed workers.
In the announcement this afternoon (July 8) he also said the government will pay £1,000 to employers who bring back staff who have been furloughed and employ them through to January.
What measures will be put in place in the Midlands?
Apprenticeships for young people
The Chancellor announced that the government will pay 100% of minimum wage for 25 hours of work for young people (16-24 year olds) if they take on a 6 month work placement.
Mr Sunak said that the firms and businesses that take on these new trainees will also be awarded substantial bonuses.
VAT cuts for hospitality and tourism sectors
Mr Sunak noted that the hospitality and tourism sectors provide almost two and a half million jobs, with many rural and coastal communities completely relying on these industries.
These VAT cuts, Mr Sunak says, will be beneficial for over 150,000 businesses and consumers nationwide - and will help protect the millions of jobs that are provided by the hospitality and tourism industries.
He added that the cuts will help to restart the hospitality and tourism sectors post coronavirus to get them "bustling again".
The Chancellor noted that, naturally, people will be cautious about going out but said that the Covid-19 restrictions wouldn't have been lifted if the government didn't think it was safe to do so.
He added that "we can all enjoy summer safely" and if businesses open up and invest in making their places safe then they need to be reassured that "demand will be there".
We spoke to people at Derby Market Hall earlier today about how they think people will react to the relaxing of lockdown.
Eat out to help out plan
Diners who eat out in August will receive up to 50% off their food, the chancellor has announced, in a "first-of-its-kind" plan to rescue the hospitality industry.
The “eat out to help out” scheme will see the government offer 50% off, up to £10 per head, on meals on Monday-Wednesday during August.
Bonuses for employers who bring people back to work from furlough
Mr Sunak explained that employers who bring back someone who was furloughed and employ them through to January will be paid a bonus of £1,000 per employee.
The bonus scheme aims to replace the furlough scheme which he says "cannot be open forever".
Help for the housing market
For the housing market, the Chancellor confirmed that stamp duty was being abolished immediately on transactions below £500,000 until March 31, 2021.
He said the average stamp duty bill will fall by £4,500 as a result and nearly nine out of 10 people buying a main home this year will pay none at all.
What is stamp duty and how will this impact me?
Money to go green
The Chancellor confirmed a £2 billion “green homes grant” to help homeowners and landlords with vouchers to make their properties more energy efficient.
It is hoped that this will create jobs and create a greener country as more people opt to make energy saving renovations to their properties.
Derby
We've been at Derby Market Hall speaking to stall owners who are back in business this week about the help they're hoping for.
Derby is one of the cities in the Midlands that has been hit especially hard by the coronavirus pandemic.
The think tank 'Centre for Cities' suggests Derby could be the third-worst affected city in the UK, with more than 40% of jobs considered vulnerable following the Covid-19 outbreak.
Rolls Royce has already announced 1,300 jobs in the city are to go and DWP's figures show that the number of people claiming Universal Credit in Derby rose to 12,595 last month, compared to 5,200 in May last year.
However, despite the job losses, the uncertainty and the bleak economic outlook people in Derby say they are confident that the city will bounce back.
Analysis: ITV News Central's Alison Mackenzie gives her thoughts:
So a Summer statement rich in eye-catching giveaways but many are asking where is the long term guarantee for the hard pressed Midlands economy?
As an example 350,000 workers depend on the auto-motive industry - job cuts are happening at Jaguar Landrover and redundancies have been announced recently by the supply chain firm DHL - the Labour MP for Birmingham Hodge Hill Liam Byrne is among those asking why the Chancellor did not announce any specific initiatives targeted at manufacturing.
The giveway bonus of a £1,000 per employee for firms who keep people in employment after the furlough scheme ends is recognised as an incentive but will it be enough to keep workers in their jobs if demand for services fails to pick up?
Again, many midlands firms are looking to make cuts NOW simply in order to survive a few extra months.
Derby is one of the cities worst affected by the Coronavirus pandemic - a low wage economy with a high majority of workers furloughed. Some people say that while it will be nice to have a 50% cut in price for takeaway food in August - they wonder if it's safe enough to venture back into cafes restaurants and bars. The risk of a second spike in infections - as has happened in Leicester - is still there.
To be fair Rishi Sunak declared in his statement hat this was just the beginning of the next phase of recovery. We won't find out how he will fund the multi-billion schemes for job retention and apprenticeships until the autumn.
The size of the economy has shrunk by 25% - a reversal of 18 years growth. Can the measures today make the change- or simply delay another cliff edge ?