22 Oct
2020

Chancellor’s update and new Member survey

This afternoon, the Chancellor has announced the latest measures to support jobs and businesses affected by the pandemic, and particularly by local and national restrictions coming into force across the UK. Since the previous Winter Economy Plan announcement, ABTA has been heavily engaged with Ministers and officials making clear the need for a rethink, particularly around the Job Support Scheme and the urgent need for tailored support for travel companies. 

While we need to take a closer look at the details, it does appear that Job Support Scheme for “open” businesses, in particular, has been enhanced, with the minimum employer contribution falling from 55% to 24%, which is only 4% higher than the current tapered furlough scheme. Nonetheless, that remains a significant drop in terms of the support offered by the original scheme introduced in March, and I recognise that, even at that level, many travel businesses are facing difficult decisions in the coming weeks with trading conditions difficult and deteriorating. What is more, travel companies that are not open remain excluded at present from the Job Support Scheme for closed businesses, as the Government does not consider this to be the result of legal restriction. We will continue to fight hard to change that assessment.

ABTA will continue to make the case for tailored financial support, with the measures taken by Government to control the virus directly responsible for the difficulties facing our industry. As part of that effort, we will be writing today to the Local Government Association, and the responsible Minister, to urge that the grant schemes announced for businesses in Tier 2 and 3 within England are extended to travel agents and tour operators. We will also be urging Members to get involved in that effort, by lobbying your own Local Authorities. Similar letters will be sent to the Devolved Administrations in Northern Ireland, Scotland, and Wales, and all templates to get involved will be made available via www.abta.com/SaveFutureTravel in the coming days. 

Elsewhere, ABTA also continues to call for the urgent policy changes required to aid recovery, and to restore confidence in travel. As part of that effort, ABTA has been participating in the meetings of the Global Travel Taskforce, which is looking at testing, and how else Government can boost demand for travel. We have also partnered with Airlines UK, and CEOs from many leading travel companies, to write to the PM to urge the removal of the global advisory against travel. That measure, along with testing, and fully regionalised quarantine rules, is essential to get people travelling again, and to provide reassurance of greater stability for their travel plans.

As it is Thursday, we are also awaiting the latest changes to FCDO Foreign Travel Advice restrictions and quarantine rules. While we do not know what changes might occur, we have been working hard behind the scenes to urge a rethink around the current restrictions on the Canaries. The German Government has announced that they will lift their travel ban this weekend, and we are doing all we can to urge the Government to make best use of the islands policy, and to follow suit.

Finally, today ABTA has launched our latest Member Survey to gather the evidence we need to support our ongoing lobbying efforts for tailored support for the travel industry, and changes in policy to enable the recovery of international travel.

I urge you to complete the survey, which closes on Friday 30 October, as it really is vital that we have the information and data to make the industry’s case. 

Mark Tanzer, Chief Executive