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Abta slams govt's 'short-sighted' furlough plans

Government
Will Payne
1 July 2021

Abta has accused the UK government of being "short-sighted" by not exempting travel companies from the increase in furlough and business rate costs.

Tanzer: 'The fact we haven’t won all that we asked for isn’t necessarily because the voice hasn’t been heard'

As of Thursday (July 1), employers will have to shoulder more of the costs of furlough as the job support scheme begins to wind down.

Mark Tanzer, chief executive of Abta, says the pressure imposed on travel businesses to meet the payments will "ultimately cost people their jobs".

"It is short-sighted of the government not to exempt travel businesses from the increase in furlough costs and business rates payments," he added. 

"Travel agents and tour operators have barely earned anything over the last 18 months so there is no money in the bank to cover these costs.