Future of the Coach Industry

Alex Norris Excerpts

Thursday 10th December 2020 Westminster Hall

[Alex Norris (Nottingham North) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Dr Huq. I am grateful to my hon. Friend the Member for Easington (Grahame Morris) for securing this debate and for the really strong case that he made. Coach companies, operators and staff up and down the country will be relieved to hear their concerns played out so strongly. Two companies—Skills and Hammonds—are in my constituency; I have worked with them throughout the pandemic, and I hope to be a voice for them here today.

The coach industry is worth £14 billion to the tourism industry. Some 600,000 children regularly rely on a coach to get them to and from school. During the pandemic, the coach industry has stepped up to provide 50,000 more spaces to make sure that travel can be done safely. It is not a question of whether we can afford to support the coach industry, but what support we can get to it and how quickly we can do that. Some of the schemes the Government have done so well during the pandemic simply have not fitted the coach industry. It is hard to do these things, but there is an obligation to fill the gap. We must understand that the coach industry is distinct from the bus industry, and the support must be distinct too. I know that Scotland has announced support recently, as has Wales, and it is now time for England to do the same. [Interruption.] The fact that Northern Ireland has also announced support is news to me.

Coach businesses have big overheads. Fleet insurance, liability insurance and rent can be more than five grand a month before companies have even thought about vehicles or maintenance. Despite being such an integral part of the tourism sector, these businesses have been unable to access support packages. For example, local authorities have decided on a case-by-case basis whether coach operators ought to fall within the leisure and tourism elements of support. We need formal recognition from the Government that coach operators are clearly part of the leisure and tourism sector, so that they can consistently get the support that is supposed to be there for them and so that we can end the postcode lottery. As colleagues have said, the Government could also, at a minimum, encourage the extension of finance holidays by another year to ensure that no coaches are repossessed over this winter. The point about underwriting loans was very well made too.

With the vaccine, we have had a glimpse of the future and of getting to a semblance of normality, but if we want normality—day trips, tours, and children going back to school and back on school trips properly—we need to make sure there is still a coach industry to do those things. The industry is fundamentally healthy and profitable, but it has been hit hard by circumstances well outside of its control. The Government must put in place short-term aid to ensure that the long-term future of the sector is sustainable.