Tourism: Covid-19

Drew Hendry Excerpts

Thursday 10th September 2020 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Thank you, Madam Deputy Speaker, or is it now Madam Global Icon—I am not sure—given something said earlier?

What a tour we have had around the nations of the UK and the beautiful and haunting tourism destinations we have, and how appropriate therefore—I say, somewhat modestly—that we now land, at the end of that tour, at the best of all: Inverness, Nairn, Badenoch and Strathspey.

The debate has found an awful lot of commonality, and I congratulate the hon. Member for North Devon (Selaine Saxby) on securing this debate and giving voice to an industry that desperately needs to have its voice heard at this time. As we have heard from the contributions of Members around this Chamber, it is facing very specific and difficult circumstances. I hope that the Minister will listen with his ears wide open to the difficulties that it faces due to the pandemic and the restrictions that have been placed on it. The hon. Lady talked about the Chancellor saying, “whatever it takes”. Well, now is the time for the Chancellor to stand up and do whatever it takes to support the people, businesses and communities that are going to be affected.

As we have heard from both sides of the Chamber, things cannot go back to normal in the short term. We have heard from hon. Members about the fact that supporting venues are closed and those streams of income are not available to support many parts of the economy. Specific sector support is required at this time, and there is the threat of the loss of specific skills, which we may never recover from. There will be huge economic effects.

The hon. Member for Arfon (Hywel Williams) talked about the need for responsible tourism. It is a two-way street. We want people to visit our tourism economies and support them, but we also want people to leave them in the beautiful state they found them in, without a repeat of some of the damage and careless behaviour we have seen—I have certainly seen it in my constituency. As he said, it is also important to get clarity on where constituents can get advice from when Ministers say in this Chamber that Government advice is meant for England only, not Wales and Scotland.

As my hon. Friend the Member for Edinburgh East (Tommy Sheppard) said, we cannot overstate the harm of the restrictions to the industry or, indeed, the return of public confidence that we will need to see to support the tourism sector. Several Members, including my hon. Friend the Member for Angus (Dave Doogan), talked about the unique effect on the coach sector, which needs bespoke support to supply the infrastructure required to move people across the country so that they can enjoy the tourism on offer.

We heard again and again calls for the Government to either extend the cut to VAT or make it permanent. There is no excuse for not doing so. We are already one of the most highly taxed countries in the whole European Union. [Interruption.] Well, Scotland is a country, and it is highly taxed on VAT. There would be benefits from extending that cut or making it permanent, which I would like to see.

Tourism businesses across our constituencies are tackling the crisis with positivity. They are doing their best, and some are actually doing very well—they are rising to the challenge—but few sectors are directly hit as badly as tourism and hospitality, which effectively face three winters, with only an autumn of a few months in between to sustain them throughout that period. We welcomed the Government borrowing to fund the job retention scheme, but we need it to be extended now more than ever. Businesses will find it more expensive to be open without furlough during those quiet months when they have no bookings than when they were closed during the pandemic restrictions.

There will be a disproportionate effect on low-income families and young people unless some work is done. In Scotland, the Scottish Government have a youth guarantee scheme, but if furlough is not continued and that support will not be there, this Government need to ensure that Scotland has the powers devolved to take action itself, including removing restrictions on borrowing.

The Scottish Government have put in place a tourism taskforce to guide the industry towards a safe, strong and green recovery. If there is an opportunity here, it is to look at how we can change the industry to make it better for the future. The Scottish Government have introduced two new funding packages worth £15 million, including a hotel recovery programme and grants from VisitScotland for self-catering businesses.

The kickstart scheme is not easily available to small employers, and the geography of a rural economy prevents many from clubbing together to take advantage of it. For those who are employed—especially young people—there are further risks, such as being exposed to exploitation and not getting a living wage. The UK Government should take heed of the call from my hon. Friend the Member for Glasgow Central (Alison Thewliss) yesterday and urgently provide further support for young people, including a real living wage for those on the scheme.

In conclusion, there is a need to protect the future of this sector and the work within it, especially for young people, and to provide support for those who have been excluded so far and face this winter without the ability to keep themselves going. The Government should look to convert loans to grants or equity, furlough should be extended and they should extend or cut VAT permanently. Failure to support businesses and people in this sector will cause lasting harm to the wider economy. If the furlough scheme is wound up, it will show people that they cannot trust this UK Government to protect them when the chips are down. If the Government are not willing to do those things, we must have the full powers in Scotland to do them ourselves—or, even better, we must have the full powers of a normal independent country to meet the needs of Scotland’s people.