Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will allocate additional financial support to (a) hostels and (b) other group accommodation providers to ensure that they have adequate funding until the 2021 tourist season.

The Government recognises the extreme disruption the necessary actions to combat Covid-19 are having on hostels and other accommodation providers.

During this difficult time the Treasury is working intensively with employers, delivery partners, industry groups and other government departments such as the Department for Digital, Culture, Media & Sport to understand the long-term effects of Covid-19 on the accommodation sector.

Some of the sector has already benefitted from the wide range of support, launched by the Government, to safeguard the economy during the pandemic. This includes a temporary reduction on VAT for tourism and hospitality from 20% to 5% until the end of March, and the deferral of VAT payments; a year-long business rates holiday for eligible businesses; grant schemes including the Retail, Hospitality and Leisure Grant and the Local Authority Discretionary Grant; the Self Employed Income Support Scheme, and the Coronavirus Job Retention Scheme.

We have also provided local authorities with £1.1bn to enable them to support businesses over the coming months, as they form a key part of local economies.

?In response to the England-wide restrictions announced by the Prime Minister on the 31 October, we have announced a new set of national support measures. This includes an extension to the Coronavirus Job Retention Scheme to March 2021, more generous support for the self-employed, extended application windows for government-backed loans and cash grants of up to £3,000 for businesses forced to close.

While we will not be able to protect every single job or save every single business, nor stand in the way of the economy adapting and people finding new jobs or starting new businesses, we will continue to monitor the impact of Government support with regard to supporting businesses, individuals, and sectors such as accommodation as we respond to this pandemic.