Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps his Department is taking to support (a) Gatwick airport and (b) the aviation sector more widely following the closure of travel corridors until 15 February 2021.

The Government recognises the challenging times facing the aviation sector due to Covid-19. The sector is crucial to the UK’s economy and businesses across the sector can draw on the unprecedented package of economic measures that have been put in place during this time. This includes a Bank of England scheme for firms to raise capital (CCFF), business interruption loan guarantee schemes, Time to Pay flexibilities with tax bills, and financial support for employees (the Coronavirus Job Retention Scheme). Overall, we estimate that the air transport sector will have received around £2.5 to £3bn of support through the CCFF and Job Retention Scheme by the end of March 2021.

The Government also recently announced the Airports and Ground Operators’ Support Scheme (AGOSS) and the Test to Release scheme, both of which will benefit the sector. AGOSS will provide support for eligible businesses, up to the equivalent of their business rates liabilities in the 2020/21 financial year, subject to certain conditions and a cap per claimant of £8m.

Finally, if businesses across the sector find themselves in severe and urgent financial difficulties as a result of Covid-19, even following the Government’s cross-economy interventions, then the Government remains open to discussions about bespoke financial support but only as a last resort.