Asked by: Carla Lockhart (Democratic Unionist Party - Upper Bann)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the travel and aviation industry to explore the potential merits of extending the Coronavirus Job Retention Scheme for those sectors.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme was designed as a temporary, economy-wide measure to support businesses while widespread restrictions were in place. Closing the scheme at the end of September is designed to strike the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring that 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 been about 300,000 higher in the fourth quarter of this year than the 2.2 million in the central forecast.
The Government recognises the particular challenges that the travel industry has faced as a result of COVID-19. In England travel agents have recently benefited from Restart Grants worth up to £6,000, and can continue to benefit from the £2 billion of discretionary grant funding that has been made available to local authorities in England through the Additional Restrictions Grant (ARG). Furthermore, 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. In addition, airports continue to benefit from the renewed Airport and Ground Operations Support Scheme announced at Budget.
The Global Travel Taskforce (GTT) report sets out a clear framework for the Government’s objective of establishing a safe and sustainable return to international travel, which is key to enabling the sector’s recovery. It has been created following extensive engagement with the international travel and tourism industries, and changes following the recent checkpoint review of the GTT are a vital step in enabling the recovery of travel operators and those whose jobs rely on the travel industry.
The Government has shown throughout the pandemic that it is prepared to adapt support if the path of the virus changes. It continues to engage closely with sectors across the economy, including the travel industry, in order to understand their recovery horizons as the vaccine is rolled out and restrictions ease.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the Coronavirus Job Retention Scheme until April 2022 for the travel industry; and what additional steps he is taking to provide ongoing support to the travel industry.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme was designed as a temporary, economy-wide measure to support businesses while widespread restrictions were in place. Closing the scheme at the end of September is designed to strike the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring that 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 been about 300,000 higher in the fourth quarter of this year than the 2.2 million in the central forecast.
The Government recognises the particular challenges that the travel industry has faced as a result of COVID-19. In England travel agents have recently benefited from Restart Grants worth up to £6,000, and can continue to benefit from the £2 billion of discretionary grant funding that has been made available to local authorities in England through the Additional Restrictions Grant (ARG). Furthermore, the travel sector is being supported with over £12 billion that has been made available through loan guarantees and support for exporters. In addition, airports continue to benefit from the renewed Airport and Ground Operations Support Scheme announced at Budget.
The Global Travel Taskforce (GTT) report sets out a clear framework for the Government’s objective of establishing a safe and sustainable return to international travel, which is key to enabling the sector’s recovery. It has been created following extensive engagement with the international travel and tourism industries, and changes following the recent checkpoint review of the GTT are a vital step in enabling the recovery of travel operators and those whose jobs rely on the travel industry.
The Government has shown throughout the pandemic that it is prepared to adapt support if the path of the virus changes. It continues to engage closely with sectors across the economy, including the travel industry, in order to understand their recovery horizons as the vaccine is rolled out and restrictions ease.
Asked by: Justin Madders (Labour - Ellesmere Port and Neston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the end of the Coronavirus Job Retention Scheme on employment in the airline sector.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme was designed as a temporary, economy-wide measure to support businesses while widespread restrictions were in place. Closing the scheme at the end of September is designed to strike the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring that 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 been about 300,000 higher in the fourth quarter of this year than the 2.2 million in the central forecast.
The Government recognises the particular challenges that the travel industry has faced as a result of COVID-19. In England travel agents have recently benefited from Restart Grants worth up to £6,000, and can continue to benefit from the £2 billion of discretionary grant funding that has been made available to local authorities in England through the Additional Restrictions Grant (ARG). Furthermore, the travel sector is being supported with over £12 billion that has been made available through loan guarantees and support for exporters. In addition, airports continue to benefit from the renewed Airport and Ground Operations Support Scheme announced at Budget.
The Global Travel Taskforce (GTT) report sets out a clear framework for the Government’s objective of establishing a safe and sustainable return to international travel, which is key to enabling the sector’s recovery. It has been created following extensive engagement with the international travel and tourism industries, and changes following the recent checkpoint review of the GTT are a vital step in enabling the recovery of travel operators and those whose jobs rely on the travel industry.
The Government has shown throughout the pandemic that it is prepared to adapt support if the path of the virus changes. It continues to engage closely with sectors across the economy, including the travel industry, in order to understand their recovery horizons as the vaccine is rolled out and restrictions ease.
Asked by: Daniel Kawczynski (Conservative - Shrewsbury and Atcham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the Coronavirus Job Retention Scheme for specific sectors, such as aerospace and aviation, to avoid redundancies due to reduced orders as a result of the covid-19 outbreak.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme was designed as a temporary, economy-wide measure to support businesses while widespread restrictions were in place. Closing the scheme at the end of September is designed to strike the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring that 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 been about 300,000 higher in the fourth quarter of this year than the 2.2 million in the central forecast.
The Government recognises the particular challenges that the travel industry has faced as a result of COVID-19. In England travel agents have recently benefited from Restart Grants worth up to £6,000, and can continue to benefit from the £2 billion of discretionary grant funding that has been made available to local authorities in England through the Additional Restrictions Grant (ARG). Furthermore, 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. In addition, airports continue to benefit from the renewed Airport and Ground Operations Support Scheme announced at Budget.
The Global Travel Taskforce (GTT) report sets out a clear framework for the Government’s objective of establishing a safe and sustainable return to international travel, which is key to enabling the sector’s recovery. It has been created following extensive engagement with the international travel and tourism industries, and changes following the recent checkpoint review of the GTT are a vital step in enabling the recovery of travel operators and those whose jobs rely on the travel industry.
The Government has shown throughout the pandemic that it is prepared to adapt support if the path of the virus changes. It continues to engage closely with sectors across the economy, including the travel industry, in order to understand their recovery horizons as the vaccine is rolled out and restrictions ease.
Asked by: Fleur Anderson (Labour - Putney)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent discussions he has had with representatives of British Airways on financial support for (a) cabin crew and (b) pilots.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
Ministers and officials have engaged extensively with the aviation industry throughout the pandemic and continue to do so. In total, we estimate that by the end of September 2021 the air transport sector (airlines, airports and related services) will have benefited from around £7bn of Government support since the start of the pandemic. This included the Coronavirus Job Retention Scheme (CJRS), Covid Corporate Financing Facility and Coronavirus Large Business Interruption Scheme.
On 3 March 2021, the Government extended the CJRS until 30 September 2021 and furloughed employees will continue to receive 80% (up to £2,500) of their current salary with the Government currently contributing 60% of this.
British Airways reported that it expected to receive a total of £279m in relief under the CJRS for the 12 months to the end of December 2020 and had applied the CJRS to more than 30,000 cabin crew and ground-based employees; and it has continued to make use of the CJRS in 2021.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps his Department is taking to ensure that passengers arriving at airports from countries on the covid-19 green list do not mix with passengers arriving from amber and red list countries.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
Since June, direct red list arrivals on direct flights have been required to enter dedicated terminals at Heathrow and Birmingham. These have helped to keep passengers separate, focussing processing capacity and easing the passengers of both red and non-red passengers through the airport.
The Government has worked closely with UK airports on social distancing guidance and maintained a consistent approach with international counterparts to protect public confidence when travelling. Airports have also retained preventative measures such as face coverings, hygiene stations and signage, which have been determined through each individual airport’s risk assessment process.
Asked by: Helen Hayes (Labour - Dulwich and West Norwood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the potential number of job losses in the travel industry following the end of the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme was designed as a temporary, economy-wide measure to support businesses while widespread restrictions were in place. Closing the scheme at the end of September is designed to strike 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 Bank of England’s Monetary Policy Report (MPR) forecasts that the unemployment rate will on average be around 4.7% across Q3 and Q4, a downwards revision from the May MPR which projected unemployment to peak at 5.4% in Q3 and below the OBR Spring forecast (6.5% in the final quarter of 2021).
The Government recognises the particular challenges the travel industry has faced as a result of COVID-19. In England travel agents have recently benefited from Restart Grants worth up to £6,000, and can continue to benefit from the £2 billion of discretionary grant funding that has been made available to local authorities in England through the Additional Restrictions Grant (ARG), while the aviation and aerospace sectors are being supported with over £11 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. In addition, airports continue to benefit from the renewed Airport and Ground Operations Support Scheme announced at Budget.
The Global Travel Taskforce (GTT) report sets out a clear framework for the Government’s objective of establishing a safe and sustainable return to international travel, which is key to enabling the sector’s recovery. It has been created following extensive engagement with the international travel and tourism industries, and changes following the recent checkpoint review of the GTT are a vital step in enabling the recovery of travel operators and those whose jobs rely on the travel industry.
The Government has shown throughout the pandemic that it is prepared to adapt support if the path of the virus changes. It continues to engage closely with sectors across the economy, including the travel industry, to understand their recovery horizons as the vaccine is rolled out and restrictions ease.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps his Department is taking to support airports with annual business rates higher than £8 million.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
The Airport and Ground Operations Scheme provides eligible commercial airports and ground operators support towards permitted fixed costs subject to certain conditions. These eligible businesses can claim based on the equivalent of their business rates liabilities, or COVID losses, whichever is lower, up to the scheme cap.
The cap strikes an appropriate balance between supporting airports in financial distress while protecting the interests of the taxpayer.
In total, we estimate that by the end of September 2021 the air transport sector (airlines, airports and related services) will have benefited from around £7bn of Government support since the start of the pandemic. This includes support through loan guarantees, support for exporters, the Bank of England’s Covid Corporate Financing Facility and the Coronavirus Job Retention Scheme.
Asked by: Damien Moore (Conservative - Southport)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what plans his Department has to support the travel industry.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
The Government recognises the challenging circumstances businesses in the travel industry face as a result of Covid-19. Firms, across the economy, that are experiencing difficulties have been able to draw upon the unprecedented package of measures announced by the Chancellor. This includes support through loan guarantees, the Bank of England’s Covid Corporate Financing Facility and the Coronavirus Job Retention Scheme. We estimate that the air transport sector (airlines, airports and related services) will have benefitted from around £7bn of government support since the start of the pandemic.
The extension of Government-backed loans and furlough payments announced at the Budget build on the support package available and will help ensure this vital and vibrant part of the UK economy is ready to bounce back in the wake of the pandemic.
We continue to take a flexible approach and keep all impacts and policies under review.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the Department for Transport:
To ask the Secretary of State for Transport, if he will match the support given to retail and hospitality sectors by extending the Airports and Ground Operators Support Scheme to offer relief equivalent to full, uncapped business rates in 2021.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
The aviation sector is crucial to the UK’s economy and businesses across the industry have drawn on an unprecedented package of economic measures which we have put in place. This includes support through loan guarantees, support for exporters, the Bank of England’s Covid Corporate Financing Facility, the Coronavirus Job Retention Scheme and the Airport and Ground Operations Scheme. In total, we estimate that by the end of September 2021 the air transport sector will have benefited from around £7bn of Government support since the start of the pandemic.
The Airport and Ground Operations Scheme provides eligible commercial airports support towards their fixed costs. The Scheme originally opened in January to provide support to airports for the 2020/21 financial year. In the March Budget, the Chancellor announced a six-month renewal to the scheme from April, initial payments will be made towards the end of the summer.
The caps on the support strike an appropriate balance between supporting airports and ground handing companies in financial distress while protecting the interests of the taxpayer.
The support will help airports and ground handlers following the introduction of international travel restrictions designed to protect the public. We continue to take a flexible approach and keep all impacts and policies under review.