The Parliamentary Under-Secretary of State for Transport (Robert Courts)
I beg to move,
That this House has considered the aviation, travel and tourism industries.
The aviation, travel and tourism sectors are an essential part of the UK’s identity and economy. More than that, they are a driver in creating a global Britain and in levelling up our country. That is reflected in the history and the facts. Before covid-19, the UK had the largest aviation market in Europe and the third largest globally, contributing £22 billion to GDP and directly providing around 230,000 jobs.
Tourism is similarly hugely important to our economy, as people travel from home and abroad to share in our culture, our landscape, our history and traditions, and the warm welcome from all corners of our United Kingdom. In 2019, 4 million people were working in the tourism industry, with the sector directly contributing £75 billion each year to the nation’s economy. The Government understand the severe impact of covid-19 and the effect that the necessary restrictions that have been introduced to control it have had on the UK’s aviation, travel and tourism sectors.
The House is united in wanting to see international travel reopened as soon as it is safe to do so, enabling those living here to see the family and friends they have been separated from for so long; for business to be done; for holidays to be enjoyed; enabling far countries to be explored; and for our friends from all corners of the wide world to be welcomed once again to the United Kingdom’s shining shores.
Jim Shannon (Strangford) (DUP)
I spoke to the Minister beforehand. The holiday and travel sector, in particular, has great uncertainty. What help can be given to businesses such as Laser Travel in my constituency that offer a tailored, top-to-bottom service? Existing furlough, self-employed support for international travel businesses for a further six months, retained business rates relief and a further tailored recovery grants regime for travel agents, tour operators—
Madam Deputy Speaker (Dame Eleanor Laing)
Order. The hon. Gentleman cannot make a speech at this point. Not everyone will get to speak in this debate who wants to do so, and interventions simply cannot be that long.
Robert Courts
I would be delighted to discuss this matter further with the hon. Gentleman. Later in my speech I will come to some of the factors that have been available to some of the wonderful travel and tourism businesses that we have all over the United Kingdom. That may give him the answer that he wants. If it does not, I am happy to discuss it further with him and I know that the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston)—the tourism Minister—would be happy to do so as well.
As I was saying, everybody can be reassured that the Government recognise the critical national importance of international travel. It connects families that have been kept apart, boosts businesses, brings in investment and underpins the UK economy. It is essential to the way that we see ourselves as a country: open, international and cosmopolitan. That is why it is essential that any steps that we take now lay the groundwork for a sustainable, safe and robust return to international travel.
In February 2021, the Prime Minister asked the Secretary of State for Transport to convene a successor to the Global Travel Taskforce, building on the recommendations set out in November 2020. The taskforce published that report in April 2021. I would like to offer my sincere thanks to the travel and tourism industry for its enormous contribution and close co-operation with Government in the development of the report and for its continued support in the ongoing efforts to successfully implement the report’s recommendations. The report set out a framework for a safe, sustainable, robust return to international travel, seeking input from across the transport industry.
The Secretary of State confirmed on 7 May that non-essential international travel would resume on 17 May, lifting the “stay in the UK” regulation and allowing international travel to recommence under the new traffic light system. The system cautiously balances the reopening of international travel with managing the risk posed by imported variants. It categorises countries based on risk, allowing us to protect public health, and particularly the roll-out of our world-beating vaccination programme, from variants of covid-19.
The Joint Biosecurity Centre produces risk assessments of countries and territories. Decisions on which list a country is assigned to and any associated border measures are then taken by Ministers, who take into account that JBC risk assessment alongside wider public health factors. The Government have had to make difficult decisions in the early stages of the return to international travel; however, they are necessary to ensure that we do not risk throwing away our hard-won achievements, which have been possible only through the hard work of the British people, and people coming forward for their vaccinations when called. However difficult these times are, and I am under no illusion that they are challenging, we must not risk having to go backwards.
To address the immediate impact of travel restrictions we have introduced an unprecedented package of financial support across the economy, totalling approximately £350 billion. By September 2021, the air transport sector alone will have benefited from around £7 billion of Government support, including accessing more than £2 billion through the Bank of England’s covid corporate financing facility and around £1 billion to £1.5 billion of support through the furlough scheme. That is the same job retention scheme that some Labour Front Benchers have criticised and called “money wasting”. I could not disagree more, and I am sure that the people whose jobs it has saved would disagree as well.
The extension of the furlough scheme to the end of September this year allows us to continue supporting businesses and protecting as many jobs as possible. As part of our economy-wide support we have provided over £25 billion to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks. We have extended business rates relief and introduced new restart grants of up to £18,000 for many in the sector. We have also extended the cut in VAT for tourism and hospitality activities to 5% until the end of September.
The levelling-up fund, the city and growth deals in Scotland and Wales, and the towns fund all show that the Government are investing in tourism infrastructure across our Union. This week, we announced town deals for a further 33 towns as part of the towns fund programme. Those places, which range from seaside towns such as Hastings and Hartlepool to the historic market towns of Bedford and Bishop Auckland, will share over £790 million to boost their local economies, create jobs and help them to build back better from the pandemic.
To date, we have announced town deals for 86 places across England worth over £2 billion in total. A new £56 million welcome back fund is helping councils to boost tourism, improve green spaces and provide more outdoor seating areas. Part of that funding will be specifically allocated to support coastal areas, with funding going to all coastal resorts across England to welcome back holidaymakers safely in the coming months.
On health certification and testing, the border requirements that international visitors will need to follow depend upon the risk rating of the locations that they have been in prior to arrival, as I referred to. As variants of concern still pose a significant risk, testing from a UK Government approved provider remains in place. We recognise that the cost of those tests is still too high. Although we have seen the price of post-arrival tests decrease from around £210 to around £170, we continue to explore options for lowering the cost of testing further, including cheaper tests being used when holidaymakers return home.
Passengers can now use the NHS app to demonstrate their covid-19 vaccination status or alternatively can request a letter that outlines proof of vaccination five days after they have received their second dose of a covid-19 vaccine. The ability to prove one’s vaccination status for outbound travel using the NHS app and an inclusive letter service means that several countries now accept vaccinated visitors from the UK with reduced or removed testing and health measures.
Sir Graham Brady (Altrincham and Sale West) (Con)
My hon. Friend says that several countries accept evidence of UK vaccinations in order to facilitate travel. Why does the United Kingdom not recognise the validity of those vaccinations for international travel?
Robert Courts
I am grateful to my right hon. Friend for raising that matter. We are considering what role vaccination may be able to play in facilitating international travel. I will refer to that again in due course.
The measures set out in the traffic-light system are not set in stone. That is also an answer to my right hon. Friend’s question. We are working towards a future travel system that can coexist with an endemic covid-19, and indeed recognising, as he has pointed out, the strong strategic rationale of the success of the vaccine programme. We are working to consider the role of vaccinations in shaping a different set of health and testing measures for inbound travel into our country. We will set out our position on that in due course.
Karen Bradley (Staffordshire Moorlands) (Con)
The Minister has talked about the way the traffic-light system might work. We were promised that there would be a green watch list that would give travellers more time, but that simply was not used in the case of Portugal. Could he expand on that a little further?
Robert Courts
I am grateful to my right hon. Friend for raising that point and appreciate that it is one on which many hon. Members will want an answer. We have always been clear that we could use the green watch list where we were able to do so. We have equally always been clear that when the evidence requires us to take swift action, we will do that, because the public would expect us to take action to protect public health, which is what we did in that instance.
As recommended in the Global Travel Taskforce report, the Government’s approach will be assessed on 28 June, 31 July and 1 October. This is to ensure that the measures and the approach in place are still adequate, that they are relevant, and that they are efficient. Of course, the first of those review points comes up at the end of this month.
The GTT report included a commitment for the Government to produce a tourism recovery plan, as was reiterated in the 22 February road map. That tourism recovery plan will set out the transformation and growth of the sector over the next five years as part of our economic recovery. The plan will address both the short-term and medium-term issues affecting the sector, such as bringing back consumer demand and supporting businesses as they reopen. We also wanted to set the sector on a long-term path to support delivery of the Government’s wider objectives, such as levelling up, strengthening our Union, and enhancing growth and productivity. We want to future-proof the tourism sector. We are determined to see the development of a more sustainable, innovative and data-driven tourism industry.
As we return to travelling, building consumer confidence is key. On 17 May, we published a passenger covid-19 charter that sets out consumer rights and responsibilities while restrictions are still in place, alongside the Government’s expectations of the businesses in the sector. In the meantime, we will be regularly reviewing travel measures, taking into account the latest domestic and international data. The system we have designed will be adaptable to the evolving epidemiological picture, and the Government must of course be prepared to take action at any time to protect public health.
Chris Grayling (Epsom and Ewell) (Con)
My hon. Friend mentioned that the Government plan two or three further checkpoints during the summer. Is he actually saying, as he talks about consumers and recovery, that if a destination is not placed on the green list or the amber list by 31 July, it cannot be reopened to travel before 31 October?
Robert Courts
If I have understood my right hon. Friend’s question correctly, the position is that we continue to assess all the measures that apply in terms of policy at the checkpoint reviews. Similarly, we look approximately every three weeks at which countries fall into which list. When I talked about consumer confidence in the charter, I was referring to the rights that consumers have and the responsibilities of those in the industry. I hope that I understood his question correctly; if not, I will come back to it later.
In the last couple of minutes, I would like to say a little bit about our priorities for the future of aviation. The UK has a proud history at the forefront of global aviation. It provides hundreds of thousands of jobs and billions of pounds to the UK’s GDP and tax revenues—money that is invested back into our vital national services. We are working on a strategic framework that will focus on building back better and ensure a successful UK aviation sector for the future. That framework will set out a plan for a return to growth of the aviation sector, and it will include consideration of workforce and skills, Union connectivity, noise, innovation, regulation and consumer issues. The strategy will complement the Government’s net zero aviation strategy. It will consider the critical role that aviation plays in growing the UK’s global reach and we will publish it by the end of the year.
The measures I have outlined demonstrate how determined the Government are to support this vital industry as we start to rebuild the economy. I am a Minister in the Department for Transport. By definition, I want to see people travelling, and I want to see people flying. I want a thriving aviation industry. I want to welcome people back to our shores to enjoy the delights our country has to offer, and I want our people to be able to explore the wonders of the world. But we cannot and will not rush this, and we cannot and will not undermine our hard-won progress. If we move too quickly—recklessly, even—we could throw away our progress and take us all, including the travel, tourism and aviation industries, back to square one. The best way to support our aviation, travel and tourism industries is to resolutely follow the vaccine roll-out, return life to normality and allow these industries once again to soar.
Madam Deputy Speaker (Dame Eleanor Laing)
It might be helpful for colleagues to know that I intend to run the debate until around 4 o’clock, because there is another debate after this, and therefore there has to be a very low time limit of three minutes, I am afraid, even at the beginning. I apologise to the right hon. Member for Maidenhead (Mrs May); I normally try to give her more than three minutes, but we are really under pressure this afternoon. I should point out that Members who are further down the list simply will not have a chance to speak today. They will be able to work out by the arithmetic whether or not they will have a chance to speak, so they do not have to come and ask me. It is a pleasure to call the shadow Minister, Alex Sobel.
Alex Sobel
There were so many excellent speeches from the Back Benches in this debate that someone would think, if they did not know, that they all came from the same party. I am sure the Minister will reflect on that. It does feel like the House speaks with one voice on this issue. I reiterate that, even if the Government publish the tourism recovery plan this week, it is still too late for the spring season and we are playing catch-up.
I completely agree with the right hon. Members for Maidenhead (Mrs May) and for Epsom and Ewell (Chris Grayling) and the hon. Member for Altrincham and Sale West (Sir Graham Brady). That might be the first—and possibly last—time that I will ever say that, but they were clear that the mixed messaging has created an existential threat to outbound tourism.
The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) was absolutely right that we are still waiting for the sector-specific support that was promised right at the start of this crisis. My hon. Friend the Member for Hampstead and Kilburn (Tulip Siddiq) is right that outbound tour operators, especially small specialists, have been disproportionately hit and need the tourism recovery plan now. My hon. Friend the Member for Easington (Grahame Morris) was right about the need to retain workers and skills—something that the tourism recovery plan should do. I also wholly support his call, echoed by my right hon. Friend the Member for Hayes and Harlington (John McDonnell), my hon. Friend the Member for Stockport (Navendu Mishra) and others, for the Government to legislate to outlaw fire and rehire, an absolute scandal. My hon. Friend the Member for Makerfield (Yvonne Fovargue) was right that we need grants as well as loan finance, as loan finance just defers the pain, and that we need to beef up consumer protection.
The hon. Member for Wimbledon (Stephen Hammond) was right that business travel, especially for events and conferences, has been hugely hit and I look forward to seeing them included in the tourism recovery plan. The hon. Member for Blackpool South (Scott Benton) rightly recognised the importance of domestic tourism and I look forward to visiting Blackpool this summer—a great British holiday. My hon. Friend the Member for Luton North (Sarah Owen) is right that the sector has been let down by late and poor communication. She is absolutely right about consumer refunds, which many airlines have sadly been lacking in making. The hon. Member for Bexhill and Battle (Huw Merriman) made excellent points and I support his call for more resources for the sector and related services.
My hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) was right that France and other countries have put climate conditions on support for the aviation industry. We need more support, but conditional support, for net zero, and our Government did not make those conditions. They talk loudly on net zero but are failing to deliver. My hon. Friend the Member for Lewisham East (Janet Daby) is a doughty defender of her constituents’ health, especially on noise and air quality, and she is right that we need to look again at flight paths over cities, including hers and mine. The hon. Member for Thurrock (Jackie Doyle-Price) called for support for shipping and cruising. She is right that the multi-nation aspect of cruises going from country to country means that the chaotic handling of the traffic light system makes it impossible for them to restart. The Minister needs to take her points on board.
I thank all who have contributed to this excellent debate and look forward to the Minister’s response.
3.57 pm
Robert Courts
This has been a very thought-provoking and wide-ranging debate, in which many excellent points have been made. The importance to the whole country of aviation and travel was perhaps most beautifully expressed by my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer), but we have heard all sorts of other points, from the importance of the supply chain, mentioned by my hon. Friend the Member for Warrington South (Andy Carter), through to the beauty of our constituencies, as stated by so many hon. Members that I dare not recount them all, although I do perhaps lean towards the points made by my constituency neighbour, my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown), for fairly obvious reasons. We in this House are united, however, on the critical importance of tourism, travel and aviation, for all sorts of reasons: because of the jobs they support in our constituencies; because of the economic support they bring; because of culture; because of the businesses that operate; but above all because of people’s lives: because of the families, because of what this means to people on a real, everyday personal basis.
I thank my hon. Friend the Member for Crawley (Henry Smith) for his tireless advocacy for Gatwick airport and the sector and for his expertise. Similar points were made by my hon. Friend the Member for Altrincham and Sale West (Sir Graham Brady), the hon. Member for Luton North (Sarah Owen) and the hon. Member for Edinburgh West (Christine Jardine). My hon. Friend the Member for Crawley said that this is not just about two weeks in the sun, and I agree. Leisure is vital and travel broadens the mind of course—it increases understanding and culture—but it is also about jobs and people’s livelihoods and families. I agree with him that a safe reopening of aviation should very much be, and is, our aim.
A number of other points were made. I thank the hon. Member for Leeds North West (Alex Sobel) for his points. I had to disagree with him when he said that the Government’s response has been “lacklustre and patchy” given that Christine Lagarde of the International Monetary Fund said it has been extensive and “unprecedented” and
“one of the best examples of coordinated action globally”.
So, as he would expect, I do not agree with him about that. The tourism recovery plan is due soon, and we will be able to update him more on that when we get to that stage.
I am hugely grateful to my right hon. Friend the Member for Maidenhead (Mrs May) for her great expertise. She mentioned international standards and we continue to work with international partners such as the International Civil Aviation Organisation, the International Maritime Organisation and the World Health Organisation, as well as with bilateral partners. Of course, the announcement by the Secretary of State for Transport of the US-UK travel taskforce is hot off the press. My right hon. Friend asks why we are in the position that we are today as compared with where we were last year. Of course, there has been a change through the variants of concern and the huge success of the vaccine rollout, which we must protect. She says that we will not eradicate covid and she will remember that I referred to its being an endemic disease in my opening speech. As my right hon. Friend and others talk about the freedom that will be brought by vaccines, I can confirm that we are working to see what more we can do to open up international travel with the aid of vaccines.
I am conscious that I am very short of time, and that you are worried about the next debate, Madam Deputy Speaker. I apologise in advance to all right hon. and hon. Members. I have a detailed note of all the points they made and will write to them if there are any specific points that they wanted me to make. If I may trouble the House for 30 seconds more, I would like to say thank you to the Chairman of the Transport Committee, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), who made a number of great points, as did my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) and my hon. Friend the Member for South West Bedfordshire (Andrew Selous). They talked about the vaccines and how they are the way out and our hope for the future.
Let me close by referring the House to my understanding and that of the Government of how difficult things are for the sector at the moment. We have a plan in place to restart tourism and aviation recovery in the short and long term. We are seeing the relaxation of restrictions as we are building out from covid. I shall end by quoting my right hon. Friend the Member for Staffordshire Moorlands. She says that life is about more than just eating and sleeping; it is about experiences and people. The hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey), quoting Hans Christian Andersen, said:
“To travel is to live”.
Of course, I entirely agree with that. The tourism recovery plan, due to be published shortly, in conjunction with the forthcoming aviation strategy, will set out and reinforce the Government’s commitment to both sectors and help us to reconnect and see the world with the help of our world-beating vaccination programme.
Question put and agreed to.
Resolved,
That this House has considered the aviation, travel and tourism industries.
Madam Deputy Speaker (Dame Eleanor Laing)
We almost made it by 4 o’clock. I will now suspend the House very briefly for two minutes so that arrangements can be made for the next debate.