Govt rejects travel sector's call for furlough extension

The Treasury on Tuesday (29 September) responded to Horrobin’s petition, stating the government did recognise "the challenging times" facing the travel industry as a result of the coronavirus pandemic and acknowledged the importance of the sector to the UK economy.

However, the response goes on to detail out the broader support the government has laid on for all businesses, rather than engage with the challenges facing travel specifically, and appears to shut the door on any tailored support for any sector building on the furlough scheme.

"The government’s judgement has been that it would be extremely challenging to extend the CJRS [Coronavirus Job Retention Scheme] for specific sectors in a fair and deliverable way, and to do so may not be the most effective or sensible means by which to provide longer-term support for those sectors most affected by Covid-19," read the Treasury’s response.

"It would also be difficult to target the CJRS at specific sectors without creating distortions, particularly since many firms work across multiple sectors. There are other schemes, including the Coronavirus Business Interruption Loan Scheme, that can provide support to firms in the travel industry.

"Businesses in the travel industry will also be able to claim under the [newly announced] Job Support Scheme if they meet the eligibility criteria. More guidance will be published shortly."

The Treasury added: "If firms across the most affected sectors find themselves in severe and urgent financial difficulties as a result of Covid-19, even following the government‘s cross-economy wage and financial interventions, then the government remains open to discussions about bespoke financial support but only as a last resort.

"Any intervention would need to be on terms appropriate to protect the interests of taxpayers."

Horrobin said he felt there was "nothing much of great significance" in the Treasury’s response, but added he thought the process – now backed by more than 50,000 people – had been "a good exercise in getting the industry talking".