Asked by: Marquess of Lothian (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to assist the hospitality industry in the UK, following both the coronavirus pandemic and cost of living crisis; and what consideration they have given to reducing VAT to 10 per cent for the hospitality industry.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
The Government announced a package of business rates support at Autumn Statement 2022 which means businesses in the retail, hospitality and leisure sectors, including pubs, will receive a tax cut worth over £2 billion in 2023-24. The UK also has a higher VAT registration threshold than any EU Member State and the second highest in the OECD, which keeps most businesses out of the VAT system altogether.
VAT is the UK's third largest tax forecast to raise £161 billion in 2023/24, helping to fund key spending priorities such as important public services, including the NHS, education and defence. The previous VAT relief for tourism and hospitality cost over £8 billion and reintroducing it would come at a significant further cost.
Asked by: Paul Howell (Conservative - Sedgefield)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what support the Government has made available for local authorities to support wedding industry businesses and those in the supply chain for that sector that have been affected by the covid-19 outbreak.
Answered by Paul Scully
The Omicron Hospitality and Leisure Grant provides local councils with one-off grant funding to support hospitality, leisure and accommodation businesses in England. Further information can be found here: https://www.gov.uk/guidance/check-if-youre-eligible-for-the-omicron-hospitality-and-leisure-grant.
The Additional Restrictions Grant (ARG) provides local councils with grant funding to support businesses that are severely impacted by coronavirus and the rise of the Omicron variant, which are not eligible for other grant funding. Further information can be found here: https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-additional-restrictions-grant.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment she has made of the implications for her policies on the protection of vulnerable people and others in (a) entertainment and hospitality venues and (b) cultural institutions of the findings of the study entitled The removal of airborne SARS-CoV-2 and other bioaerosols by air filtration on COVID-19 surge units published by Andrew Conway Morris PhD et al.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government continues to closely monitor the risks posed by COVID-19 and the Omicron variant based on scientific advice, and will respond accordingly to help keep our most vulnerable communities safe. We are committed to working alongside all of our sectors to ensure maximum safety and we continue to share the COVID-19: ventilation of indoor spaces to stop the spread of coronavirus guidance during our sector engagements, to help minimise the risk of transmission in public settings.
Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the Coronavirus Job Retention Scheme beyond 30 September 2021 until at least March 2022 for people who work within small- and medium-sized enterprises within the travel industry.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
After nineteen months, the unprecedented Coronavirus Job Retention Scheme (CJRS) closed on 30 September 2021. Since the scheme’s inception, the CJRS supported 11.6 million jobs across the UK, with employer claims totalling £68.5 billion, aiding businesses and protecting livelihoods. It was right to provide exceptional support while widespread Covid restrictions were in place. As the economy has reopened, the jobs market has recovered, vacancies are at record highs and the success of the government’s vaccine programme has allowed us to lift almost all restrictions. As set out in the Plan for Jobs: Progress Update published on 13 September 2021, this approach has worked. It is right that we continue to wind down our temporary pandemic support, while continuing to support businesses to invest in the recovery, and supporting people into new jobs.
Our Plan for Jobs will continue to create jobs and ensure support for business continues, especially for those sectors most affected by necessary restrictions and which may take longer to bounce back, such as the travel and tourism industry. The following support package remains in place for businesses:
o Over 90% of eligible retail, hospitality and leisure businesses in England are still benefitting from a 66% cut in business rates until 31 March 2022 – worth over £16bn since March 2020.
o Hospitality and tourism firms are also still benefitting from a VAT reduction – paying only 12.5% in VAT from 1 October 2021 until 31 March 2022. This supports around 150,000 businesses, helping to protect 2.4 million jobs.
o The arts and culture sector can still access support from the £1.57 billion Culture Recovery Fund to help protect jobs across the country, which was topped up at the Spring Budget by a further £390m.
o Businesses continue to be able to access finance thanks to the Recovery Loan Scheme until the end of the year, and are protected from eviction if they are behind on rent on their premises until next March.
Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if her Department will make provisions to support small and medium-sized enterprises in the travel sector beyond 30 September 2021 when the Coronavirus Job Retention Scheme ends.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government has provided over £35 billion in support to the tourism, leisure and hospitality sectors over the course of the pandemic and is committed to supporting the safe return of tourism to the UK, as set out in the Government's Tourism Recovery Plan published in June.
Businesses across the economy, including the travel industry, can draw on over £350 billion worth of loans, rates relief, VAT deferrals and the furlough scheme, the latter of which ended on 30 September. The Government continues to take a flexible approach and keep all impacts and policies under review.
The Government is regularly engaging with travel industry bodies - such as UKInbound, the European Tour Operators Association and the Association of British Travel Agents - to monitor the pandemic’s impact and to support the sector’s recovery.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps she plans to take to protect jobs in the travel industry after the end of the Coronavirus Job Retention Scheme.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government has provided over £35 billion in support to the tourism, leisure and hospitality sectors over the course of the pandemic in the form of grants, loans and tax breaks.
For example, the Government cut VAT for tourism and hospitality activities to 5% last July, with this significantly reduced rate remaining until the end of this month. To help businesses manage the transition back to the standard rate, a 12.5% rate will then apply for a further six months.
We are committed to supporting tourism’s return to pre-pandemic levels ahead of independent forecasts, as set out in the Government's Tourism Recovery Plan published in June. The Government is regularly engaging with stakeholders, including via the Tourism Industry Council, to monitor the pandemic’s impact and to support the sector’s recovery.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what financial support will be made available to the tourism industry after the end of the Coronavirus Job Retention Scheme.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government has provided over £35 billion in support to the tourism, leisure and hospitality sectors over the course of the pandemic in the form of grants, loans and tax breaks.
For example, the Government cut VAT for tourism and hospitality activities to 5% last July, with this significantly reduced rate remaining until the end of this month. To help businesses manage the transition back to the standard rate, a 12.5% rate will then apply for a further six months.
We are committed to supporting tourism’s return to pre-pandemic levels ahead of independent forecasts, as set out in the Government's Tourism Recovery Plan published in June. The Government is regularly engaging with stakeholders, including via the Tourism Industry Council, to monitor the pandemic’s impact and to support the sector’s recovery.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment his Department has made of the effect of the covid-19 pandemic on the (a) inbound tourism and (B) the tourism economy in the UK.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
COVID-19 has had a significant impact on inbound tourism and the wider tourism industry. From last March, inbound flight arrivals were down 90% for over a year compared to 2019 levels, hotel occupancy far lower than normal, and the sector was closed for at least six of the last 12 months - more so in some parts of the country subject to local lockdowns last autumn.
We also know that tourism has been the sector most reliant on the government’s unprecedented package of support measures. The Coronavirus Job Retention Scheme was crucial in saving tourism jobs, which at its peak supported 87% of hospitality and leisure businesses. In total, at least £25 billion has been provided to the leisure, tourism and hospitality sector so far over the course of the pandemic.
In June, we published the Tourism Recovery Plan to help the sector recover back to pre-pandemic levels and build back better for the future. The plan aims to recover domestic tourism to pre pandemic levels by 2022 and international tourism by 2023; both at least a year faster than independent forecasts predict.
Asked by: Justin Madders (Labour - Ellesmere Port and Neston)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment his Department has made of the effectiveness of the restart grant scheme for businesses in the wedding industry.
Answered by Paul Scully
The £5 billion Restart Grant scheme announced by my Rt. Hon. Friend Mr Chancellor of the Exchequer on 3 March 2021 are one-off grants to businesses in the non-essential retail, hospitality, leisure, personal care and accommodation sectors, to support businesses to reopen as Covid-19 restrictions are relaxed.
Strand One of the Restart Grants aims to support non-essential retail with grants of up to £6,000. Stand Two is to support hospitality, accommodation, leisure, personal care and gym businesses, with grants of up to £18,000. The higher amount is in recognition that these sectors have been allowed to open at a later date and are likely to be more severely impacted by remaining restrictions.
The Department does not hold sector or subsector level data, however we have released a breakdown of Restart Grant funding allocations and payments by Local Authority area which can be found here: https://www.gov.uk/government/publications/coronavirus-grant-funding-local-authority-payments-to-small-and-medium-businesses.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Secretary of State for Health and Social Care's Answer of 15 April 2021 to Question 179033, on Coronavirus: Gyms, whether his Department has plans to introduce incentives similar to the Eat out to help out scheme for gyms and fitness facilities.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises the significant disruption the necessary actions to combat Covid-19 are having on sectors like the fitness industry.
During this difficult time the Treasury is working intensively with employers, delivery partners, industry groups and other government departments to understand the long-term effects of social distancing across all key areas of the economy.
The Chancellor has already announced unprecedented support for individuals and businesses, to protect against the current economic emergency. By the end of March 2021, the Government made up to £20 billion available for business grants. At Budget 2021, the Government announced a further £5 billion of business grant support, including the Restart Grants Scheme, in which hospitality, accommodation, leisure, personal care and gym business premises in England will be eligible for grants up to £18,000, subject to their rateable value. The Restart Grants will replace the monthly Local Restrictions Support Grant and Local Restrictions Support Grant, which both closed at the end of March.
There are no current plans to introduce incentives like the Eat Out to Help Out scheme for gyms and fitness facilities. We will continue to monitor the impact of government support on public services, businesses, individuals and sectors, including the leisure, gyms and fitness sector, as we respond to this pandemic, and keep all policies under review.