Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of ending the Coronavirus Job Retention Scheme on the aviation industry.

The Coronavirus Job Retention Scheme (CJRS) was designed as a temporary, economy-wide measure to support businesses while widespread restrictions were in place. The scheme closed at the end of September, striking the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring incentives are in place to get people back to work as demand returns.  This approach has worked; the OBR have estimated that without the short-term fiscal easing announced in the Budget, and in particular the CJRS extension, unemployment would have otherwise been around 300,000 higher in the fourth quarter of this year than the 2.2 million in the central forecast.

Furthermore England has relaxed the rules on international travel, which will support the recovery of the aviation industry. A new system for a safe and sustainable return to travel has been set out, which separates countries into a red list and rest of world. As of Monday 11 October, England’s red list was reduced to just 7 countries, with 47 countries coming off the red list. Passengers fully vaccinated with an authorised vaccine arriving in England from non-red countries or territories will only need to take a day two test and will not need to self-isolate or take a pre-departure or day eight test. From 24 October fully vaccinated passengers arriving in England from countries not on the red list can take a cheaper lateral flow test, instead of a PCR test, on or before Day 2 of their arrival into the UK. Anyone who tests positive will need to take a confirmatory PCR test which can be genomically sequenced to help identify new variants.

Eligible travellers vaccinated in over 100 countries and territories including Brazil, Ghana, Hong Kong, India, Pakistan, South Africa and Turkey can avoid self-isolation, pre-departure testing and day eight testing requirements on arrival to the UK from non-red countries and territories, like UK vaccinated adults.

The Government recognises the particular challenges the aviation industry has faced as a result of Covid-19. The aviation and aerospace sectors are being supported with over £12 billion that has been made available through loan guarantees, support for exporters, the Bank of England’s Covid Corporate Financing Facility (CCFF) and grants for research and development.

The Government has shown throughout the pandemic that it is prepared to adapt support if the path of the virus changes. We continue to engage closely with sectors across the economy, including the aviation, travel and tourism industries, to understand their recovery horizons as the vaccine is rolled out and restrictions ease.